Friday, August 10, 2007
If you have the cash, it seems like it's going to be a good time to pick up a recent used car. $150 billion worth of adjustable rate mortgages are set to reset to a higher rate in October. The next 11 months will see an average of $30 nillion worth resetting every month (source). That's roughly 500,000 households in October and then another 100,000 per month, or a million and a half over the next year. Those people are going to have to cut out other things to keep their houses, and I'm sure a lot of them bought nice cars in the last couple of years.