Not any recent studies that I’m aware of. We proposed doing a study jointly with a private data vendor company on precisely this topic but it didn’t really go anywhere. The question is whether foreclosure clusters can have a pernicious kind of spillover effect. I would say that ...

Obviously, if rates went up sharply, that could be a problem.

Well, as you say, the rates are going to reset, and households will make decisions about whether to refinance to a different point on the yield curve. Or people can decide to move. I don’t think there’s going to be a catastrophe on the average reset date that—

Right.

Okay, let me try to answer that question. I can’t really comment on the hype mentality or the mortgage broker who uses a high pressure sales tactic. But in 2004, for example, I believe that, of the ARMs that were originated, less than 10 percent were traditional ARMs with ...

Then I beg your pardon. Of course, the stock differences are enormous. As for the flow difference, on net, GSE guaranteed mortgages in both pools and to a small extent on the balance sheet hardly grew at all in 2004, while it was an explosive year for growth for the ...

I’m sorry, I shouldn’t have said that. Do you mean the flow or the stock?

Not in the United States. I don’t know what country or planet— [laughter]

Yes. The data that you see on my first exhibit in principle include second liens, closed-end second liens. And in particular in the graph that you cite I use the newly available 2004 data from HMDA which for the first time has collected data on whether or not the HMDA ...

Not that I don’t have an opinion. [Laughter]

Not yet.

At the moment only Freddie Mac, I believe, has a pilot program to buy these, and it’s very small.

An interest-only mortgage can be purchased by a GSE if it’s below the conforming loan limit.

As Josh noted, everyone’s talking about house prices; but they also seem to be talking a great deal about mortgages. The popular consensus appears to be that homebuyers, especially in hot housing markets, now make token down payments and can just scrape into their homes by resorting to interest-only ...