66% of all households have mortgages
18% had adjustable rates in 2003
25% had adjustable rates in 2005
16% were prime borrowers in 2003
25% were prime borrowers in 2005
45% were subprime borrowers in 2003
59% were subprime borrowers in 2005
*Figures according to Freddie Mac
With so many subprime borrowers in 2005 with adjustable rate loans and their loans resetting in
2007-8 it doesn’t take a rocket scientist to have a fundamental understanding of the current mortgage mess. The greed of the mortgage compaines, Wall Street, the buyers, the Realtors have hurt everyone.
When the inventories in the housing market return to normal levels and the mortgage-backed securities return to a more reasonable investment, the future will be brighter.
Not all bad news, current buyers are looking around and seeing the good news: plenty of inventory, low prices, sellers willing to negotiate and then negotiate some more.
A word of caution: It’s more important than ever to check your credit scores, to find a professionial mortgagebanker/broker and to get pre-approved. Only the best will qualify, there isn’t much money flowing into real estate finance right now.
Technorati: philadelphia housing, mortgage crisis, mortgage facts
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