A new report by Fitch Ratings, suggests that the the housing market is likely to suffer a new round of foreclosures.  The report focuses on the fact that about 70 percent of Adjustable Rate Mortgages (ARMs) will adjust in 2011, leaving the note holders with higher payments. These ARMs represent $189 billion in outstanding debt.

From the Washington Post:

“In its report, Fitch estimates that $134 billion in option ARMs will reset in the next two years. It expects monthly payments to jump 63 percent on average, or $1,053 a month, for loans adjusting this year and next, prompting a rise in defaults and foreclosures.”