Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

The "reset" problem could be a four-year drag on housing...

Much has been written in recent months about as bad as the subprime problem looks at the moment, what with rising defaults, it will only get worse. That’s because the peak for “resets” of all those subprime mortgages with initial teaser rates as low as 1%, but destined to rise to 7%, 8%, 9% or higher doesn’t occur until later this year. The peak months for subprime resets will be between December and February.

That’s true, and the inference is that if we can ride out the next four or five months, then we’ve survived the worst and hopefully housing prices will start to stabilize.

Sorry. The International Monetary Fund just released a report on the global outlook and it included a chart produced by researchers at Credit Suisse that takes a broader look at ALL forms of adjustable or “resettable” mortgages. And the picture ain’t pretty. All combined, we’re looking at another four years of mortgage resets, which means another four years of hard road for the housing market.

blog comments powered by Disqus