ARM mortgage resets seem to have peaked

Just for reference here is a commonly used chart of the expected schedule for ARM mortgages to reset their rates. Note that it appears that we are now past the peak. We have one coming month (April?) at a higher rate than this month, but otherwise the reset rate will be declining substantially from what was experienced this past Fall. Yes, there is a bulge out in 2010, but that is not an immediate concern and the peak rate of resets is below the recent levels.

It is quite possible that the combination of the big Fed rate cuts in conjunction with the talking down of the economy by the recession fear-mongerers may dampen the impact of the ARM resets (lower mortgage rates) to avoid the bulk of the worst-case scenarios.

-- Jack Krupansky