Bloomberg News reports that Foreign Investors are losing their appetite for US Debt.
This basically means that the Fed is going to have to raise the interest rates offered on the treasures, which in turn will cause the mortgage rates to rise as well. This doesn’t bode too well for the countless investors and homeowners with ARMs. In San Diego this year, 87% of all new loans were ARMs. This is one of the factors that will cause home prices to deflate in the area.