[photodawg]

That's the killer. If this trend spreads, look out! The bubble is going to bust. Once interest shoots up, it's all over.
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That's not a bubble, chicken little, its supply and demand. People get what they wish for. When mortgage rates go up demand goes down. When demand goes down, prices come down. When you buy and expensive risky ARM to save a few bucks on a 30 year monthly payment, when fixed rate mortgages were the cheapest in history you're not thinking right. But if you didn't set yourself up for this scenario, you should bottom fish a little bit, find some flexible sellors and buy some dirt cheap housing.
When nobody can afford the mortgage money and rates come down in a few years, housing will be more of a value, and new people will be able to buy.

[durasell]

That's only if there's a soft landing.

[Tamar1973]

When you buy and expensive risky ARM to save a few bucks on a 30 year monthly payment, when fixed rate mortgages were the cheapest in history you're not thinking right.

I agree with you. Those people who lusted after the ARM's were penny wise and dollar foolish.