[PhilosopherStones]

That’s why I posted the hypothetical doubling.

Most of the sub-primes are already out of the system.

Next up is Alt-A (No doc, but good credit rating).

After that will be prime.

At each level, we get a greater percentage of the total US mortgage market, but a lower percentage of defaults (Primes had their ability to repay checked and, generally, were smarter about the types of loans they took).

[Truthsearcher]

Have you taken into account the truckload of ARMs and had low initial 3 year to 5 year rates that are about to kick up adjust to the current higher rate.

And what about all the people who have now seen the value of their houses fall below the amount they owe on the mortgage and decide to that they’d rather default and take the credit hit than be pay $300,000+interest for a house that’s only worth $250,000.

[DRey]

"After that will be prime."

I see. You need to add 15% for misc. and earmarks, and 25% for administrative fees.