Is an ARM a good product for TODAY??

I am not, nor have I ever been an advocate for an ARM. Interest rates have not been falling over the past 3 weeks as a general rule, and don't let Fed rate cuts trick the consumers into thinking this. I recently wrote a blog about how Fed rate cuts affect mortgage rates, and the truth of it is, there is no correlation. The better indicator for the average consumer is actually watching the 10 year T-Bill. While this isn't a rate driver, it does give a fairly accurate reflection of how mortgage rates will generally move.

There are arguments for ARMs, however, such as the investor that puts enough money down on a house to cover our declining market, and the investor that plans to hold the home long enough for the market to recover, yet sell the house before the rate adjusts. The writing on the wall suggests, however, that people generally the most accurate prognosticators! That's my .02 anyway.

arm's have put us in a very difficult place in the current economy.  Not good in my opinion.