Lou Barnes is not a great writer and he is excitable. Nevertheless I like to check him out.

About the flat housing prices, Lou wrote “‘flat’ is the statistically significant word for prices, but flat is enough to leave low-equity households — 15 percent of the mortgaged nation — badly exposed to economic shock and ill-advised loans.”

About the rising interest rates;

ARM borrowers have had an easy escape from 7.75 percent resets to 6.25 percent refis for the last nine months, and that hatch is closing.