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'New Heights' For Housing.

National Mortgage News

| June 13, 2005 | Dymi, Amilda | COPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

CAMBRIDGE, MA -- The 2005 State of the Nation's Housing Report foresees "new heights again over the next 10 years" on housing investment, despite the long-term risk and potential loan default associated with the recent boom in subprime lending and creative mortgage products. Affordable housing on the other hand will continue to lag behind the overall market growth.

Released by the Joint Center for Housing Studies at Harvard University, the report found that while "mortgage product innovations helped markets stay hot," subprime loan options allowed millions of credit-impaired borrowers to become homeowners. Interest-only and adjustable-rate loans helped increase borrowers buying power making ARMs so popular they …

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