Mortgage Rates Set to Reset

The looming crisis is getting closer and closer:

"'In October alone more than $50 billion in ARMs will reset,' according to Mark Zandi, chief economist and co-founder of Moody's Economy.com. That's a record, according to Zandi."

"As a result, Doug Duncan, chief economist for the Mortgage Bankers Association (MBA), is expecting as many as 600,000 home owners will get into trouble with perhaps half of them actually losing their homes."

You read that right. Fifty billion dollars in October alone. With the help of Credit Suisse, I outlined the reset schedule here. It's looking true to form. In the tenth month of 2007, we can observe a spike in ARM resets. It will be a record. It will be ugly. It will get worse.