Marin Real Estate Pulse

Now that the housing bubble has officially started to deflate we can turn our worries to the newest wiggle: Rate Shock.

At least three of the major television and cable networks have run stories in the past week about the danger confronting homeowners with adjustable rate mortgages when those rates adjust. Experts estimate that 25 percent of all loans are adjustable rate mortgages and billions of dollars worth of these will adjust in the next year. Because of compounding factors such as rising energy costs, static wages, and a softening housing market, these adjustments may just price many people out of their own homes.