Mymiamiblog

2001-2005; United States housing bubble

2001: US Federal Reserve lowers Federal funds rate 11 times, from 6.5% to 1/75%

2002-2003: Mortgage denial rate of 14% for conventional home purchase loans is half of 1997 – as quoted from the Federal financial Institutions Examination Council or FFIEC

2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states.

2004: U.S. home-ownership rate peaked with an all time high of 69.2% Census Bureau Reports on Residential Vacancies and Home-ownership, U.S. Census Bureau 10-26-2007

1997-2005: Mortgage fraud increased by 1,411%  Financial Crimes Enforcement Network, U.S. Department of the Treasury (11-06)

2004-2005: Arizona, California, Florida, Hawaii, and Nevada show record price increases in excess of 25% per year

2005: Boom ended August 2005. The booming housing market halted abruptly for many parts of the U.S. in late summer of 2005

Financial crisis of 2006-2008

2006: Continued market slowdown.  Prices are flat, home sales fall, resulting in inventory buildup.  U.S. Home construction index is down over 40% compared to the previous year.

2007: Year -to- year decreases in both U.S. home sales and home prices U.S. treasury Secretary Paulson calling the “housing decline…the most significant risk to our economy.”

Subprime mortgage industry collapse March 2007 the United States’ subprime mortgage industry collapsed due to higher than expected home foreclosure rates with more than 25 subprime lenders declaring bankruptcy, announcing significant losses, or putting themselves up for sale BusinessWeek 03-07

“The crash of the U.S. economy has begun.” announced the morning of Wed. June 13,2007 by economic writers Steven Pearlstein and Robert Samuelson

By the end of 2008 more than 15 federally insured banks failed

2008 saw the tightening of lending standards making it almost impossible to qualify for a loan with less than 20% down.

Temporary moratorium is placed on foreclosures in the hopes of enabling borrowers to solve their mortgage issues.

2009 to Present

Areas have seen price corrections to levels not seen since 2002 and 2003

04-09: Foreclosure moratorium lifted

“Cash is King” as lenders still make it difficult for buyers to qualify for home loans

as option arm loans revert next wave of foreclosures likely

To Be Continued…