Skier, You are hyper-ventilating. Inflation is under control, the economy is anything but overheated and 10 year Treasury yields are in the 4.0-4.2 range. This scenario keeps long-term rates low. Well qualified buyers can refi and grab a second teaser rate easily because of recent appreciation. The up, up and away you are refering to is the rise between the teaser rate and current LIBOR Treasury rates, which, by the way, are still LOW..Not everyone is on one month adjustables, many went 3-5 years.