Food for Thought
Nationally approximately $3 trillion worth of ARMs will adjust their rates to much higher levels this year and next. Even if the Federal Reserve doesn’t raise interest rates again, all these ARMs will still adjust upwards from their low initial teaser rate to the current interest rate.
One potential side-effect may be yet another spike in foreclosure rates. According to RealtyTrac, December marked the fifth straight month that foreclosure rates rose above the 100,000 mark with 109,652 homeowners in some stage of the foreclosure process.
The five states struggling with the highest foreclosure rates:
1. Colorado - 1 in every 376 households
2. Nevada - 1 in every 392 households
3. Georgia - 1 in every 480 households
4. Mass.- 1 in every 541 households
5. Texas - 1 in every 567 households