Dr. Wachter's U.S. Mortgage Payment Index
Second Quarter, 2007The mortgage landscape for many homeowners...and new homebuyers…can be difficult to navigate. To help clear the confusion around today's mortgage products and payment options, Dr. Susan M. Wachter, Professor of Real Estate and Finance at The Wharton School of the University of Pennsylvania, issues a quarterly report in partnership with Genworth. In the current issue, Dr. Wachter focuses on the shift in the mortgage market to safety and predictability, and away from the more high risk loans that flooded the market over the past few years.
Q2: Consumers Flocking to Safe Mortgages
In the second quarter of 2007, we are seeing borrowers turn to safer mortgages
in a “flight to safety.” Increased scrutiny from regulators and lawmakers,
combined with a heightened awareness of high-risk loans, is resulting in a
shift away from piggyback and exotic mortgages. Today, it appears that
borrowers are more likely to choose fixed-rate mortgages. Low down payment
buyers are leaning towards mortgage insurance to avoid the need for a second
loan, as evidenced in Q1 by an impressive increase in the use of private
mortgage insurance, which is now tax deductible.
View the entire Q2 Mortgage Payment Index. (pdf | 134kb)
