Tag Archives: panel study of income dynamics (psid)

Subprimes Were Not The Culprit In Most Mortgage Meltdowns

ANN ARBOR, Mich.—Subprime mortgages were not the main reason behind the housing crisis that started in 2009 and continues to bedevil the faltering U.S. economy, according to a University of Michigan study.

“Our analysis shows that the major underlying driver of the continuing foreclosure crisis was aggressive refinancing using adjustable rate mortgage loans that looked safe at the time because of increasing housing prices,” said Frank Stafford, an economist at the U-M Institute for Social Research (ISR). (more…)

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