Subprime Outcomes: Risky Mortgages, Homeownership Experiences, and Foreclosures provides the first rigorous assessment of the homeownership experiences of subprime borrowers. It considers homeowners who used subprime mortgages to buy their homes, and estimates how often these borrowers end up in foreclosure. In order to evaluate these issues, homeownership experiences in Massachusetts over the 1989–2007 period are analyzed, using a competing risks/ proportional hazard framework. Two findings are presented: first, homeownerships that begin with a subprime purchase mortgage end up in foreclosure almost 20 percent of the time, or more than 6 times as often as experiences that begin with prime purchase mortgages; second, house price appreciation plays a dominant role in generating foreclosures. In fact, most of the dramatic rise in Massachusetts foreclosures during 2006 and 2007 were due to the decline in house prices that began in the summer of 2005.
Source: Federal Reserve of Boston
Showing posts with label Housing. Show all posts
Showing posts with label Housing. Show all posts
Thursday, April 10, 2008
Thursday, October 25, 2007
Housing Nonprofit Organization
NeighborWorks America is the "national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts." The website features news, case studies, and reports on subjects such as aging in place, disaster preparedness, foreclosure solutions, home equity protection, manufactured housing, predatory lending, and refinancing. It includes materials about campaigns, such as its free telephone consultation service on foreclosure solutions, and listings of local NeighborWorks member organizations.
Monday, July 23, 2007
Housing Afforadability
From the National Association of Homebuilders:
Metro Area House Prices and Affordability
A question frequently posed to economists at the NAHB is “What happens to housing affordability in my city when house prices rise?” One way to answer this is to change the price of a representative home by a fixed amount and observe the impact on affordability. Based on national mortgage underwriting standards, it is possible to estimate how many households that qualified for a mortgage before a house price increase no longer qualify for one afterwards. Those are the households that are “priced out” of the market for a home.
Applying this approach to the U.S. as a whole (detailed results for all 357 metro areas are provided in Table 1) shows that in 2007—using typical assumptions about the mortgage, down payment, property taxes and property insurance, a $1,000 increase in a median-priced new home, more than 217,000 households.
The size of the priced out effect is largely a function of the income distribution. The larger the number of households that have the income necessary to buy a given priced house before the price increase, the more households will be priced out after the price rise. Conversely, the more expensive the house, the fewer the households adversely affected by a price increase.
Full Report (PDF; 61 KB)
Determining the Number of Households Priced Out of a Market (PDF; 17 KB)
Building Fee Increases and Reduced Housing Affordability (PDF; 37 KB)
Detailed results for all 357 metro areas
Metro Area House Prices and Affordability
A question frequently posed to economists at the NAHB is “What happens to housing affordability in my city when house prices rise?” One way to answer this is to change the price of a representative home by a fixed amount and observe the impact on affordability. Based on national mortgage underwriting standards, it is possible to estimate how many households that qualified for a mortgage before a house price increase no longer qualify for one afterwards. Those are the households that are “priced out” of the market for a home.
Applying this approach to the U.S. as a whole (detailed results for all 357 metro areas are provided in Table 1) shows that in 2007—using typical assumptions about the mortgage, down payment, property taxes and property insurance, a $1,000 increase in a median-priced new home, more than 217,000 households.
The size of the priced out effect is largely a function of the income distribution. The larger the number of households that have the income necessary to buy a given priced house before the price increase, the more households will be priced out after the price rise. Conversely, the more expensive the house, the fewer the households adversely affected by a price increase.
Full Report (PDF; 61 KB)
Determining the Number of Households Priced Out of a Market (PDF; 17 KB)
Building Fee Increases and Reduced Housing Affordability (PDF; 37 KB)
Detailed results for all 357 metro areas
Wednesday, April 11, 2007
Joint Center for Housing Studies
From Harvard University:
http://www.jchs.harvard.edu
The JCHS "is Harvard University's center for information and research on housing in the United States.
The Joint Center analyzes the dynamic relationships between housing markets and economic, demographic, and social trends."
The site features publications on topics such as the state of the nation's housing (with information and data about house production, ownership, and prices), home remodeling, rentals, and more.
Also includes an overview of research topics and articles written by JCHS members.
Searchable.
http://www.jchs.harvard.edu
The JCHS "is Harvard University's center for information and research on housing in the United States.
The Joint Center analyzes the dynamic relationships between housing markets and economic, demographic, and social trends."
The site features publications on topics such as the state of the nation's housing (with information and data about house production, ownership, and prices), home remodeling, rentals, and more.
Also includes an overview of research topics and articles written by JCHS members.
Searchable.
Wednesday, April 4, 2007
Housing Costs
From the Center for Housing Policy: Paycheck to Paycheck: Wages and the Cost of Housing in America
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