2007 - The Year for Mortgage ARM Resets

Over $1 Trillion of mortgage debt is set to reset in 2007 causing many homeowners lots of pain and increases in payments and possibly foreclosure. The belief in the financial markets recently is that the housing market has bottomed and that housing will stabilize in 2007 since ne home sales in November were relatively strong and home inventory for sale has been gradually declining. However, the mortgage debt ready to reset will impact the housing market mext year, keeping things weak. In addition, the strong new housing data has been more of a reflection of builders cutting prices to move inventory and not a core increase in consumer demand. Home inventory levels have also been dropping because there are few buyers out and about in the wintertime and many people are not interested in keeping an active listing for their home if there are few buyers out there shopping. The spring and summer of 2007 will be true test of the strength of the US home market, but if you are in the market for a new home, do not rush and look for the right home at the right price.