Rising risk in mortgage market

Jeff Tyler May 27, 2014
HTML EMBED:
COPY

Rising risk in mortgage market

Jeff Tyler May 27, 2014
HTML EMBED:
COPY

A new report from the American Enterprise Institute suggests that home-buyers are more likely to default on new mortgages.

The mortgages were subjected to a stress test. Under the worst case scenario, an increasing percentage of the loans would fall into foreclosure.

But when considered historically, housing consultant Thomas Lawler says new mortgages are, “Substantially lower in terms of overall risk than any time in 20 plus years.”

Lawler says the risk of another all-out housing crisis is much lower because fewer mortgages are backed with borrowed money.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.