Subscribe By RSS
The Rise And Fall Of The Subprime Mortgage Market
By Mark Perry on July 18, 2008 | More Posts By Mark Perry | Author's Website
The chart above shows the subprime share of mortgage originations from 2001 to 2007, using data from Harvard’s “2008 State of the Nation’s Housing” study, available here.
1. From 2004-2006 the subprime share of mortgage originations was around 20%, almost triple the 7-8% share from 2001-2003. What a rise!
2. By the end of fourth quarter 2007, the subprime share dropped to only 3.1%, lower even than the 7-8% average during the 2001-2003 period. What a fall!
3. That 20% subprime mortgage share from 2004-2006 was obviously the cause of the subprime crisis. Although that huge amount of subprime mortgage activity from 2004-2006 might create problems for a few more years, it’s also the case that a significant correction in subprime lending has taken place - that market has almost completely dried up. Looking forward, this correction suggests a future mortgage and housing market that will be much better than today’s.
Subscribe by RSS 
Subscribe by Email
Email This Post To A Friend
The Great Louisiana Healthcare Rip-Off - Consumer Attitudes: The Future Of Saving And Spending
Will Emerging-Market Outperformance Last? - Economic Highlights: GDP Up 2.8%, Corporate Profits Increase By $130 Billion
Risk Aversion Takes A Back Seat In Forex Markets
- Stocks Regain Some Ground Following Little Changed Fed Minutes - U.S. Commentary - 4 mins ago
- European Markets Fall On U.S. Data - European Commentary - 15 mins ago
- Stocks Remain Mostly Negative In Early Afternoon Trading - U.S. Commentary - 2 hrs ago
- Stocks Seeing Continued Weakness In Late Morning Trading - U.S. Commentary - 3 hrs ago
- Consumer Confidence Shows Unexpected Improvement In November - 3 hrs ago
