Here's a newbie musing.

Inflation pressure is for real. ARM's are coming due for hikes in still record numbers. The Fed is between a rock and my skull (well, maybe not quite that hard of a place).

1) Raise or maintain interest rates to stem the rising tide of consumer prices which is pretty standard practice these days.
2) Cut rates to relieve pressure on homeowners with timed-out ARM's, and risk fueling even hotter inflation.

Given the former happens, and I think odds are good, aren't we looking for a flood of BPO's and REO business?

Again, I'm new to this, so what do experienced hands think?