| Chart 3: Nontraditional Products Help Homebuyers Bridge the Affordability Gap | |||
| Month and Year | Interest-Only Share of Nonprime Originations (percent) |
Pay Option: Negative Amortization Share of Nonprime Originations (percent) |
Nonprime Mortgage Originations (dollars in billions) |
| Dec-01 | 1.06% |
0.05% |
Text description: Nonprime mortgage originations rose at an even pace from 2001 through 2003 to reach between $25 billion and $30 billion in January 2004. Originations accelerated in 2004 before peaking in March 2005 in a range between $60 billion to $70 billion and declined since then to reach approximately $50 billion in August 2005. Recent data on subsequent months are not fully available and are subject to revision. |
| Jan-02 | 0.75% |
0.04% |
|
| Feb-02 | 1.36% |
0.03% |
|
| Mar-02 | 2.21% |
0.08% |
|
| Apr-02 | 1.71% |
0.11% |
|
| May-02 | 1.72% |
0.08% |
|
| Jun-02 | 2.86% |
0.16% |
|
| Jul-02 | 3.33% |
0.15% |
|
| Aug-02 | 3.65% |
0.12% |
|
| Sep-02 | 4.15% |
0.10% |
|
| Oct-02 | 5.01% |
0.17% |
|
| Nov-02 | 5.84% |
0.16% |
|
| Dec-02 | 6.31% |
0.22% |
|
| Jan-03 | 6.16% |
0.28% |
|
| Feb-03 | 6.60% |
0.19% |
|
| Mar-03 | 7.07% |
0.19% |
|
| Apr-03 | 6.25% |
0.21% |
|
| May-03 | 8.28% |
0.31% |
|
| Jun-03 | 8.65% |
0.38% |
|
| Jul-03 | 8.74% |
0.32% |
|
| Aug-03 | 9.23% |
0.37% |
|
| Sep-03 | 9.42% |
0.77% |
|
| Oct-03 | 10.92% |
1.03% |
|
| Nov-03 | 12.66% |
1.40% |
|
| Dec-03 | 15.01% |
1.75% |
|
| Jan-04 | 15.66% |
2.00% |
|
| Feb-04 | 18.80% |
1.37% |
|
| Mar-04 | 22.30% |
1.61% |
|
| Apr-04 | 24.45% |
1.50% |
|
| May-04 | 26.58% |
1.93% |
|
| Jun-04 | 29.54% |
3.33% |
|
| Jul-04 | 29.96% |
4.65% |
|
| Aug-04 | 28.62% |
6.06% |
|
| Sep-04 | 29.99% |
5.79% |
|
| Oct-04 | 28.83% |
6.31% |
|
| Nov-04 | 29.33% |
5.90% |
|
| Dec-04 | 29.44% |
7.40% |
|
| Jan-05 | 27.83% |
8.86% |
|
| Feb-05 | 28.34% |
11.74% |
|
| Mar-05 | 29.88% |
15.48% |
|
| Apr-05 | 29.80% |
17.88% |
|
| May-05 | 33.42% |
18.20% |
|
| Jun-05 | 33.77% |
19.83% |
|
| Jul-05 | 36.33% |
17.01% |
|
| Aug-05 | 35.97% |
18.00% |
|
| Sep-05 | 32.26% |
22.81% |
|
| Oct-05 | 30.09% |
18.73% |
|
| Nov-05 | 29.04% |
23.31% |
|
| Dec-05 | 28.41% |
23.69% |
|
| Note: Nonprime mortgage originations data are securitized originations of Alt-A and subprime product. Data on nonprime mortgage originations are not fully available after August 2005 and are not displayed. | |||
| Source: LoanPerformance Corporation (Alt-A and B&C mortgage securities database). | |||