Foreclosures on Subprime Fixed Below 1999-2004
The chart above (click to enlarge) is from a new study by the CBO, showing foreclosures by type of mortgage through QIV 2007. As the chart indicates, the real mortgage problem is pretty much contained to subprime ARMs only, which make up less than 5% of the 75 million homes in America. Although foreclosures increased for Subprime Fixed mortgages in 2007, the 1.5% rate in late 2007 was actually at or below the peak levels from 1999 to 2004. Prime ARM foreclosures increased in 2007, but reached a level of only about 1% by the end of 2007.