Comments on: Reality check of option ARM recast http://www.1stMillionAt33.com/2009/10/reality-check-of-option-arm-recast/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: Kirk Kinder http://www.1stMillionAt33.com/2009/10/reality-check-of-option-arm-recast/comment-page-1/#comment-5483 Kirk Kinder Tue, 06 Oct 2009 00:43:04 +0000 http://www.1stMillionAt33.com/2009/10/reality-check-of-option-arm-recast/#comment-5483 The key to housing will be supply versus demand, and this is still going to be high. Currently, it has dropped to 8 months supply, but a report came from Amhearst Securities stating the shadow inventory of foreclosed homes is 7 million, which is 16 months of supply coming to the market over the next year or two. Couple this with rates eventually rising as the Fed stops buying MBS and you have a market heading back down. I don't buy the worst is over. The key to housing will be supply versus demand, and this is still going to be high. Currently, it has dropped to 8 months supply, but a report came from Amhearst Securities stating the shadow inventory of foreclosed homes is 7 million, which is 16 months of supply coming to the market over the next year or two.

Couple this with rates eventually rising as the Fed stops buying MBS and you have a market heading back down. I don’t buy the worst is over.

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