I am looking at headlines saying "stocks tumble on subprime woes."  This a.m., there was an NPR talk show, Diane Rehm, on the subprime issues. If you have a chance, listen to it on line. It was a good, well-balanced panel.

One of the things I heard was that in 2005-2006, subprime lending added a little over 2% to the total homeownership market in the U.S.  Predictions are that as many as half of those loans will be foreclosed. That means, according to this commentator (link above to the show), that homeownership will have improved by 1% as a result of the subprime lending.

What I take from this is that subprime lending was a good thing for the housing market, and still is, but that it may be a rotten thing for those mortgage investors who made risky loans. And that while those mortgage lenders may be suffering the consequences, that wise investors will continue to loan to the other 98% of people who want to own a home. 

So, any of your mortgage types on Active Rain want to weigh in on this?

 Meanwhile, Flagstaff real estate is still ticking along just fine. Thanks.