[4RE KLR]

HMMM

Even if the rate does drop that does not mean that the mortgage companies will lower their rates on the adjustables or even keep them the same.

If you look at the arm's that are in trouble right now you will see that all of them are adjusted WAY above the current baseline. The mortgage companies raised the rates just because they could.

And we all know that just because you could does not mean you should.

I am still on the thought that the mortgage companies have done this to themselves and I really hope they have to pay the fiddler.

As for Merrill, they are big enough they can keep rates down, even if the Fed bumps them up, to protect their own investments from becoming non performing assets. Countrywide and BofA do not seem to be smart enough to follow.

It is all about GREED!