Quote:Why did you omit November 2-8, 2016 in your detailed analysis?

 

I am guessing the "easy to get" mortgages you are referring to are adjustable rate mortgages, in which people could pay less money down not knowing their payments a couple years later would skyrocket to unaffordable levels. People were forced out of their homes when this happened. The housing market was actually booming for a while, but many of the same people being talked into signing ARMs to buy homes were also losing their jobs.

 

Two names that often came up in the news were Fannie Mae and Freddie Mac. I had never heard of those agencies before the housing crisis began, but understood this much: they were largely at fault for the real estate crap going on.

 

I never read or heard the term subprime loan, but that part of your analysis reminds me of when money borrowing companies sprouted all over central Ohio to help people who can't live paycheck to paycheck. Mom explained it this way: you need money on Tuesday and can't wait until payday on Friday, so you go to one of those little businesses, but in the end you pay more than you get. Is that what you are calling a subprime loan?:

 

November 2-8, 2016 is really of no concern.  I simply used November 1 much like I could have used October 31.  I was only pointing out time frames not specific dates.

 

The "easy to get" mortgages do include ARM's, but also other mortgages such as 0 or little money down type of mortgages as well as what was commonly referred to as a NINJA loan (No Income No Job No Assets).  These are also referred to as "subprime loans".  These are just a few examples, there are other examples out there.

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