[HereInTheHeartland]

“-resetting ARMS (based on higher interest rates which reflect the perceived risk in the mortgage market) in the next few months will affect a lot of middle class folks with decent credit, not just the subprime market everyone is discussing.”

Most of those people will be able to refinance into decent rates.
Some are doing it right now, others are waiting.

[cgbg]

The reason I am convinced that we are headed for a major recession is that refinances have generated cash for consumers over the last few years--that economic driver just isn't going to be there in the next couple of years.