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Mortgage Rates Hit Hard

The Association of Community Organizations for Reform Now (ACORN) recently released a study titled The Impending Rate Shock: A study of home mortgages in 130 American cities. The report outlines cities they believe are the most at risk for “rate adjustment shock”.

According to the report, adjustable-rate mortgages account for 24% of all home loans nationwide, but made up three-fourths of all subprime home loans in 2005. Sixty percent of subprime loans are set to adjust by the end of the year which could increase the financial risk level of families, particularly minorities because of the larger number of subprime loans held by this group of homeowners.

High-cost loans represented more than two of every five home-purchase and refinance loans in the following top 10 communities most at risk:

  • Detroit, MI
  • Flint, MI
  • Memphis, TN
  • Jackson, MS
  • McAllen, TX
  • El Paso, TX
  • Laredo, TX
  • Brownsville, TX
  • Springfield, IL
  • Birmingham, AL

    • This entry was posted on Monday, August 21st, 2006 at 10:03 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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