"I agree, what is your point? Mine is that thousands of FHBs were sucked into large mortgages at these artificially low rates and are now paying 1.5%+ more than 12 months ago, not only .75% more as per the example that UT used."
As I said point was simple cut backs can save enough money to cover the rate rises. Also anyone borrowing even at the lowest rates would have had a buffer for rate increases (even if it is just the one imposed by the bank through their lending criteria).
