A wave of resetting of adjustable rate mortgages had been poised  to the flood of foreclosures as their rates jumped, according to CNNMoney.com.  Some 420,000 hybrid ARMs are scheduled to rest in 2009, according to the Treasury Department.  A year or so ago, it seemed that many of the loans were going to see their interest rates reset to as high as 12 percent or more.   But then interest rates started falling, hitting lows they hadn’t seen in 37  years.

 

 “Many people are actually seeing their adjustable  rates fall,”  said Barry Glassman, a financial adviser with Cassady & Company.  “Some loans  are resetting even lower than some fixed-rate loans”. We thought that the 8 percent loans would reset to about 12 percent,” said Alan White, a law professor at Valparaiso University who has studied the lending industry’s modification efforts, “but they only went to 9 percent or less”