Two More Ways the Mortgage Market differs from 2007/2008

The chart below shows how loans with a credit score under 660 – the bottom colours of yellow and dark blue – which were about 20% of the total in the 2004-2007 period, have virtually ceased, with loans over 720 now making up the vast majority of new mortgages.

Two other changes:
Adjustable-rate mortgages can lead to higher default rates when interest rates rise, but they now represent less than 5% of total purchase and refinance loans, compared with over 35% at the peak of the pre-GFC (Global Financial Crisis) housing cycle. (FORTUNE)

The ratio of Americans’ mortgage debt to their real estate assets—also called loan-to-value—was just 27% in the second quarter, compared to over 40% in 2008 and roughly 50% in 2010. (Bank of America)

And read these articles:
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year

Home Prices Are Rebounding
Insurance Reform : Premiums still rising sharply
Naples Mid-year 2023 Market Stats

5 things people don’t know about Naples5
How to protect your house from title fraud
News from District 2
Q1 Market Stats

Naples a top city for corporate headquarters post-pandemic
Naples grabs No. 1 spot on this ‘Best Places to Live’ list

Florida lawmakers eye property insurance reforms

Expansion Plans for Fort Myers Airport
Guide to Buying and Selling in Southwest Florida

Mortgage and Economic commentary
Why Mortgage rates Will Fall
What drives Mortgage Rates in one chart
Lies, Damned Lies and Inflation “Statistics”*

Market Reports
Buyers Undeterred in Ian’s Hardest-Hit Areas
Home Prices After Ian? Probably Going Up
How have home prices behaved after previous major Hurricanes?

  • Andrew Oliver, M.B.E., M.B.A.
    Real Estate Advisor

m 617.834.8205