Housing Crisis: ARM Defaults ‘Close to Subprime’
Apr 30th, 2008 | By Contrarian Profits | Category: Featured, Financial NewsSky-high default rates om mortgages are not confined to subprime-related borrowing, and the US economy has yet to feel the full force of the housing crisis, according to a report in the The Wall Street Journal.
According to the WSJ, there is a “rapid rise” in default rates on ARM mortgages, mortgages that give borrowers with good credit several different monthly-payment options, reports. And a report by Citigroup says losses on ARMs may be “close to subprime” in some cases.