Information Porn, Annotated: Getting Graphic with the Mortgage Market

by Alex Stenback on July 27, 2007

Mortgage_debt_breakdown

[We clipped the graphic above - click for bigger - from Barry Ritholtz over at the Big Picture, who points out what a great piece of graphic-y information porn it is.  We agree, and have added some highlights to make a point.]

Over the past weeks, there has been almost wall to wall coverage of the mortgage meltdown, and it is without question the biggest financial story of 2007.  So who can blame the average dude for coming to the conclusion that the entirety of the mortgage market is falling apart, or in some sort of barely contained chaos?

But (as the graphic illustrates) let’s not forget that the "mortgage meltdown" is happening in the non-prime world (sub-prime and Alt-A)- roughly 20% of the market.  The "Prime" mortgage market is far larger than
sub-prime, is performing well, and thus far has seen almost zero spillover impact from the sub-prime crisis. 

Things may get uglier in the mortgage market, and this sub-prime catastrophe will have all sorts of direct and indirect effects on our economy, but for the average "prime" borrower (which is most of you who can document you income and have a 620 or better credit score) things have hardly changed.

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