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U.S. Department of Housing and Urban Development Office of Policy Development and Research Data on Home Mortgage Finance from the 1997, 1999, 2001, 2003, 2005 American Housing Surveys

Data on Home Mortgage Finance from the
1997, 1999, 2001, 2003, and 2005
American Housing Surveys


Prepared For: U.S. Department of Housing & Urban Development
Office of Policy Development & Research



Prepared By: Frederick J. Eggers
Econometrica, Inc.
Bethesda, Maryland






April 2008 Table of Contents 1. Purpose...............................................................................................................................1 2. Organization .......................................................................................................................2 3. How the Tables Were Constructed...................................................................................3 4. Comments ..........................................................................................................................5 4.1 Comments on the Tables .............................................................................................5 4.2 Comments on Appendices...........................................................................................7 Table 1-1997: Mortgage Status of the Owner-occupied Housing Stock in 1997...............9 Table 1-1999: Mortgage Status of the Owner-occupied Housing Stock in 1999.............10 Table 1-2001: Mortgage Status of the Owner-occupied Housing Stock in 2001.............11 Table 1-2003: Mortgage Status of the Owner-occupied Housing Stock in 2003.............12 Table 1-2005: Mortgage Status of the Owner-occupied Housing Stock in 2005.............13 Table 1-Summary: Mortgage Characteristics of the Housing Stock: 1997-2005 ............14 Table 2-1997: Characteristics of Primary Mortgages in 1997 ...........................................15 Table 2-1999: Characteristics of Primary Mortgages in 1999 ...........................................18 Table 2-2001: Characteristics of Primary Mortgages in 2001 ...........................................22 Table 2-2003: Characteristics of Primary Mortgages in 2003 ...........................................26 Table 2-2005: Characteristics of Primary Mortgages in 2005 ...........................................30 Table 2-Summary: Characteristics of Primary Mortgages 1997-2005..............................34 Table 3-1997: Characteristics of Mortgages Originated in 1996 and 1997 ......................36 Table 3-1999: Characteristics of Primary Mortgages Originated in 1998 and 1999........39 Table 3-2001: Characteristics of Mortgages Originated in 2000 and 2001 ......................43 Table 3-2003: Characteristics of Mortgages Originated in 2002 and 2003 ......................47 Table 3-2005: Characteristics of Mortgages Originated in 2004 and 2005 ......................51 Table 3-Summary: Characteristics of Mortgages Originated 1997-2005 .........................55 Appendix A: Samples Sizes Available for Analysis of Home Mortgage Finance ........ A-1 Appendix B: Comparison of 2001 AHS Data with Data from 2001 Residential Finance
Survey .................................................................................................................................. B-1 Appendix C: Analysis of Mortgage Related Variables in the 2005 AHS ........................ C-1


ii 1 Data on Home Mortgage Finance from the 1997, 1999, 2001, 2003, and 2005 American Housing Surveys 1. Purpose
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau
have been collecting data on the American housing stock since 1973. The American Housing
Survey (AHS) gathers extensive information on the characteristics of housing units and their
occupants, including information on mortgage finance for owner-occupied units.

In recent years, HUD has examined the usefulness of the information on mortgages because of
the growing importance and complexity of housing finance. In February 2004, HUD published a
study conducted by Abt Associates of Cambridge, Massachusetts. The study was entitled
Analysis of Housing Finance Issues Using the American Housing Survey (AHS), and was
prepared by Ken Lam and Bubul Kaul. 1 This report examines the strengths and weaknesses of the mortgage data produced in the AHS from the perspective of the datas ability to shed light on
the most common research and policy issues in housing finance. In November 2007, HUD
released a study by Econometrica, Inc., entitled The American Housing Survey and Non-
Traditional Mortgage Products that was authored by Fred Eggers and Don Bradley. 2 This second report examined the questions in the survey on mortgage finance with the objective of
designing questions to obtain more information on the non-traditional mortgage products that
have become so prevalent in housing finance. Both reports identified strengths and weaknesses
of the AHS for studying issues involving housing finance.

This report is the third in this series of HUD-funded analyses of the mortgage finance data in the
AHS. It organizes the data on the financing of owner-occupied units from the five AHS surveys
conducted between 1997 and 2005. This report has three goals:
The report aims to show researchers and policy makers in the housing finance area that
the AHS contains valuable information on mortgages. The tables in this report present
data differently than those in the published AHS reports. The organization used in these
tables highlights features of mortgage finance that are important to researchers and policy
analysts. The tables in this report should enable HUD and the Census Bureau to understand better
the strengths and weaknesses of the mortgage data contained in the AHS. In particular, it
is hoped that these tables will encourage outside analysts to examine the AHS data and
offer suggestions on needed improvements in the way that the AHS collects and presents
information on mortgage finance.
This report should help researchers and policy makers in the housing finance area to
assess whether the AHS can provide the information that they formerly obtained from the 1 This study is available at the HUD USER website, www.HUDUSER.org , under Publications. 2 This study is available on the HUD USER website at http://www.huduser.org/publications/polleg/ahsanalysis.html . 2 Residential Finance Survey (RFS). From 1950 through 2000, the Census Bureau reported
information on the financing of both owner-occupied and rental housing in conjunction
with the decennial censuses. Currently it is uncertain whether there will be an RFS
associated with the 2010 census. However, it is almost certain that any 2011 RFS survey
will be limited to the financing of rental housing. The AHS would be the only alternative
source of information on the financing of owner-occupied housing. 2. Organization
This report presents data on the financing of owner-occupied units from each of the five AHS
surveys in three sets of tables. The structure of the tables is based on formats used in Residential
Finance Survey: 2001, the published report from the 2001 RFS. 3 In particular, the tables report the characteristics of financing separately for all owner-occupied properties, properties in one-
unit structures, properties in two-to-four unit structures, condominiums and co-operatives, and
mobile homes.

There are three basic tables.
Table 1 is modeled after Table 1 in the RFS report. It contains information on the
mortgage status of the entire owner-occupied housing stock, overall and for each of the
four categories of owner-occupied properties. Table 2 presents information on primary mortgages for the owner-occupied housing
stock. It contains some of the information presented in Tables 2, 3, 8, and 9 of the RFS
report. Table 3 is very similar to Table 2, except that it describes the characteristics of mortgages
originated in the year of the AHS survey or in the year preceding the AHS survey. This
set of tables focuses on the mortgages originated between the surveys, and therefore
presents a more current picture of the characteristics of products provided by the housing
finance system. The RFS publication does not contain tables similar to Table 3, but the
same information can be produced using the public use file of the RFS.
There are six versions of each of the three tables, one version for each of the five AHS surveys
and a summary version that combines data from the other five versions.

Appendix A contains counts of the number of sample units in each survey used for Tables 1, 2,
and 3.

Appendix B contains a comparison of the data from the 2001 AHS in Tables 1 and 2 with similar
data from the 2001 RFS. The 2001 RFS data are based on analysis of the 2001 RFS public use
files by the author of this report for another study. 4 3 This report is available on HUD USER at http://www.huduser.org/intercept.asp?loc=/datasets/rfs/censr-27.pdf . 4 Characteristics of Housing Finance in 2001: An Analysis of Data from the 2001 Residential Finance Survey, submitted by Econometrica, Inc., to the Department of Housing and Urban Development, October 6, 2006. Appendix C examines the quality of the AHS data related to mortgage finance by looking at how
often respondents failed to answer questions or provided answers that needed editing.

Section 3 explains how the data in the tables and the appendices were constructed.

Section 4 provides some overview comments on the tables and appendices. 3. How the Tables Were Constructed
Weighting: The tables involving the 1997 and 1999 AHS surveys used weights based on counts
from the 1990 census; the tables involving the 2001, 2003, and 2005 AHS surveys used weights
based on counts from the 2000 census. The Census Bureau provides two sets of weights for the
2001 AHS surveyone based on the 1990 census and one based on the 2000 census. This report
uses the weights based on the 2000 census to enhance comparability to the 2001 RFS.

Rounding: The statistical program used to produce the tables in this report rounded the data for
all owner-occupied units and single-family units to the nearest 10,000 units. Data for the other
categories were usually calculated without rounding. The tables report the data to the nearest
1,000 units. The tables are generally no more precise than the nearest 10,000 units when
reporting information on single-family units or all units.

Allocations: When information is missing for an important variable, the Census Bureau will
often substitute an estimate for the missing information. This process is called allocation.
The AHS provides an indicator whenever the Census Bureau allocated or otherwise edited the
value of a variable. The report uses all the data, including allocated values, and does not
examine whether the allocation process affects any of the results. Appendix C furnishes
information on the frequency of edits and allocations.

Structure Type: This report uses three AHS variables to determine structure type (single-
family, 2-4 unit structures, condos, and mobile homes); the variables are NUNIT2, NUNITS, and
CONDO. All three variables are not always available for every unit, thus structure type is
missing for approximately 2 percent of the units. The report presents mortgage-related data
for the missing units. Each table has six columns of count data, one column for each of the four
structure types, one for missing, and one for all units.

Other Missing Data: The Census Bureau does not always allocate values to variables if
respondents cannot or will not answer specific questions. In some cases the public use files
record a . to indicate that the information is missing. The public use files record a D for
Dont know or an R for Refused. When these values appear in the data, the tables report
weighted counts of missing, dont know, and refused values combined into one row. When we
calculate percentages, we exclude missing, dont know, and refused responses from the
denominator and do not calculate a percentage for the missing, dont know, and refused row.
3 4 Mortgage Debt: The RFS contains information on mortgage debt outstanding. The AHS does
not collect information on the outstanding balances on mortgages other than home equity lines of
credit. The tables create alternative measures.
Table 1 constructs an estimate of the total amount of mortgage debt contracted for based
on the mortgages in effect at the time of the survey. It sums the original mortgage
amount for regular mortgages and the maximum line of credit available for home equity
lines of credit. 5 This is not a measure of the actual debt outstanding, but rather a measure of the maximum credit extended on the home. Using this measure, Table 1 also reports
the mean and median ratio of this sum to the owners estimate of the value of the
property at the time of the survey.

Table 3 provides two measures: (i) the original mortgage amount on the primary
mortgage and (ii) the sum of the original mortgage amounts on all mortgages plus all
outstanding balances on home equity lines of credit. 6 Because of the short time between mortgage origination and the AHS survey, the original mortgage amounts are probably a
reasonable estimate of the outstanding balance, and this sum is probably a reasonable
approximation for mortgage debt outstanding. Table 3 also reports the mean and median
ratio of these measures to the owners estimate of the value of the property at the time of
the survey.
Type of Primary Mortgage: Tables 2 and 3 report the distribution of primary mortgages by
type of mortgage. Both previous studies commissioned by HUD found problems with these data.
The Lam-Kaul study concluded that the AHS overestimated fixed-rate, self-amortizing
mortgages and underestimated adjustable rate mortgages (ARMs). The Eggers-Bradley study
observed that the AHS reports on mortgage types that are rare today (mortgages with adjustable
terms and graduated payment mortgages), but failed to collect the information needed to identify
the non-traditional mortgage products that were prevalent from 2003 to 2006. Tables 2 and 3
collapse the AHS data into three categories: fixed-rate, self-amortizing mortgages; ARMs; and
other. These tables also count reverse mortgages in 2001, 2003, and 2005. 7
Mortgage Insurance: Tables 2 and 3 report the distribution of primary mortgages by the
presence or absence of mortgage insurance and by type of mortgage insurance. Both of the
previous studies commissioned by HUD found that the AHS does not have good counts of
mortgages with private mortgage insurance. The variable related to mortgage insurance,
MORTIN, has FHA, VA, Farmers Home, and some other type as options for the respondent.
For these tables, the report took those who indicated some other type and checked to see 5 In 1995 and 1997, the formula for this sum is AMMORT + AMMRT2 + AMMRT3 + AMMRT4 + HELMP1 + HELMP2 + HELMP3 + HECR1 + HECR2 + HECR3. In 2001, 2003, and 2005, the formula for this sum is
AMMORT + AMMRT2 + AMMRT3 + AMMRT4 + HECR1 + HECR2 + HECR3. The HELMP variables are not
available in 2001, 2003, and 2005. 6 The formula for this sum is AMMORT + AMMRT2 + AMMRT3 + AMMRT4 + HEBAM1 + HEBAM2 + HEBAM3. 7 The variable identifying reverse mortgages, RAM, was not available in 1997 and 1999. 5 whether private mortgage insurance was included in the mortgage payment (the PMIPMT
variable) 8 for this group in 2001, 2003, and 2005.
Interest Rates: The AHS public use files report interest rates using two variablesone (INTW)
that reports the whole number component of the interest rate and one (INTF) that reports the
fractional component of the interest rate. For the 1997 survey, INTF has four valuesone for
each quarter of a point. For the other four surveys, INTF has eight valuesone for each eighth
of a point.
4. Comments 4.1 Comments on the Tables
Table 1-Summary shows general consistency in results across years. The percentage of
homeowners with mortgages rose gradually from approximately 60 percent in 1997 to 66 percent
in 2005. Interest rates fell from over 7.5 percent in 1997 to below 6.0 percent in 2003 and in
2005. Low interest rates and rising values encouraged both movement to new units and
refinancing, and therefore greater reliance on mortgage financing. The percentage of
homeowners with home equity lines of credit fell in 2001 and 2003, possibly because of the high
rate of refinancing during this period. The refinancing of a primary mortgage results in the
closing out of existing secondary mortgages and home equity lines of credit. The percentage of
homeowners with a home equity line of credit returned to the 1997-1999 level in 2005.

The measure of credit extended mushroomed from approximately $3 trillion in 1997 to over $7
trillion in 2005, with the share attributed to home equity lines of credit increasing from 5 percent
to 8 percent of the total. At the same time, the mean ratio of credit extended to the owners
estimate of value for units with mortgages actually fell from 67 percent to 63 percent, indicating
that valuesor at least owners perception of valueswere increasing faster than credit
extended.

Single-family units represent approximately 85 percent of all owner-occupied units and therefore
how single-family units are financed dominates the characteristics of financing for all owner-
occupied units. Nevertheless, Table 1 shows some interesting differences in financing by
structure type. Mobile homes are substantially less likely to be financed than other types of
structures. The percentage of mobile homes with financing ranged around 43 percent over the
1997 to 2005 period. Mobile homes are also much less likely to have home equity lines of
credit. While less than half of the mobile homes were financed, those that were financed had
much higher ratios of credit extended to owners estimate of value.

Table 2-Summary also shows general consistency across surveys. This table tracks the growing
importance of refinancing both directly and indirectly. In the section on Origin of Primary
Mortgage, refinancing grew from 9 percent in 1997 to 48 percent in 2005. In the section on
When Originated, the distributions become progressively more concentrated in recent years as
one moves from 1997 to 2005. In 1997, the most recent 6 years account for the origination of 8 The PMIPMT variable was not available in 1997 and 1999. 6 over half of the primary mortgages; by 2005, the most recent 4 years account for over half of the
originations. The section on Current Interest Rate, traces the introduction of lower rate
mortgages into the stock of outstanding mortgages.

Table 2-Summary reports that fixed-rate, self-amortizing mortgages account for 86 to 93 percent
of all primary mortgages. As discussed in Section 3, other studies have suggested that the AHS
overestimates this proportion and underestimates the proportion of ARMs. Table 2-Summary
traces the known decline in FHA-insurance over this period. As noted in Section 3, the AHS
does not ask whether a mortgage is insured by a private mortgage insurer. The numbers reported
for 2001 through 2005 were calculated from other information collected by the AHS and may
underestimate the share of private mortgage insurance. However, the estimate from the 2001
AHS is very close to the estimate in the 2001 RFS (11.8 percent vs. 12.2 percent). The section
on Term at Origination confirms the continued dominance of 30-year mortgages, but does
indicate two upward blips in the share of 15-year termsone in 1999 and one in 2003.

Looking across the different structure types, it appears that condos and units in cooperative
buildings are more likely to use ARM financing and that mobile homes are less likely to use
ARM financing. The greater use by condos and cooperatives is less pronounced after 1999.
Mobile homes typically have shorter term mortgages. In all five surveys, the median term is 30
years for all other structure types; for mobile homes the median grows from 15 years in 1997 to
20 years in 2005.

Table 3-Summary allows one to compare the mortgage products originated during the five 2-year
periods between 1995 and 2005. 9 Originations of primary mortgages ranged from 7.4 million during 1996 and 1997 to 15.7 million during 2002 and 2003. Refinancing reached a peak in the
2002-2003 period, when refinancing constituted 65 percent of all originations of primary
mortgages. ARMs and other types of products were most common in the beginning and the
ending periods. The share of FHA-insured mortgages fell from 16 percent of the originations in
1996-1997 to 10 percent in 2004-2005. The share of private mortgage insurance also fell over
the time that the AHS could track private mortgage insurance. The decline after 2001 may
reflect the emergence of the practice of combining a conforming 80 percent loan-to-value
mortgage with a second mortgage. These linked mortgages allow borrowers to avoid private
mortgage insurance while still obtaining high overall loan-to-value ratios. Mortgages with terms
of 15 years were most popular in the 1998-1999 and 2002-2003 periods.

Interest rates declined from a median of 8.0 percent in the 1996-1997 period to a median of 5.75
percent in the 2004-2005 period; interest rates were particularly low in the last two periods. The
interquartile range was 150 basis points in the first period and 125 basis points in the last four
periods. The value of the properties on which mortgage were underwritten increased sharply
over the period; the mean grew by 133 percent and the median by 90 percent. The estimates of
loan-to-value ratios for the primary mortgages and the estimates of the ratios of all loans to value
declined in general across the periods, but the period-to-period changes were mixed. 9 The AHS collects data during the course of the survey year, and thus the survey furnishes only a partial picture of mortgages originated in the survey year. The coverage of the survey year was greater for the 1997, 1999, and 2001
surveys when interviews took place from August to November. In 2003 and 2005, interviews took place from April
or May into September. 4.2 Comments on Appendices
Appendix A shows that the AHS provides large samples for studying the financing of owner-
occupied structures. The number of owner-occupied units with mortgages ranged from almost
30,000 in 1997 to close to 37,000 in 2003. The number of owner-occupied units with mortgages
originated since the previous AHS survey varied more because of large fluctuations in the
amount of refinancing activity. The minimum sample of units with recent mortgages was 2,775
in the 1997 AHS survey, and the maximum sample was 7,182 in the 2003 AHS survey.

Appendix B demonstrates a comforting level of consistency between the 2001 AHS and the 2001
RFS, both of which characterized the outstanding stock of mortgages as of 2001. In comparing
the two surveys, one should realize that the AHS analyzed units while the RFS analyzed
properties. For studying the financing of owner-occupied housing, this distinction is not that
important. For example, the tables constructed from the AHS identify units in structures
containing 2-4 units where the units are occupied by the owner, while the comparable RFS
numbers report on 2-4 unit properties where the owner resides in the property. Since only one
unit in a 2-4 unit structure can be occupied by the owner, the two approaches are conceptually
identical. Overall, the AHS counts more owner-occupied units. It counts more single-family
units, while the RFS counts more 2- to 4- unit properties and more condos and units in
cooperative buildings.

The percentage of owner-occupied units with mortgages was 62.2 percent in the 2001 AHS and
64.5 percent in the 2001 RFS. The AHS found 9.5 percent had home equity lines of credit
compared to 12.2 percent in the RFS. The AHS indicates that 33.2 percent of the outstanding
mortgages were refinances, while the percentage of refinances in the RFS was only 24.7 percent.
Both surveys found only a small percentage of assumed mortgages or wrap-around mortgages.

The major difference between the two surveys involves the characterization of the type of
mortgage products in existence in 2001. As might be expected, the RFS found a much higher
percentage of ARMS, 12.7 percent compared with the AHSs 5.0 percent. The RFS found a
sizeable number of mortgages with balloon paymentsa category that the AHS does not track
effectively.

The AHS found that 67.2 percent of mortgages had neither insurance nor guarantee, while the
RFS found a comparable 69.3 percent in this category. Among insured mortgages, the AHS had
higher shares for FHA and VA, while the RFS had higher shares for private mortgage insurers
and the Rural Housing Service. The two surveys report similar proportions of mortgages with
15-year terms (16.2 percent in the AHS and 18.3 percent in the RFS) and with 30-year terms
(64.1 percent in the AHS and 69.7 percent in the RFS). The AHS reports more mortgages with
terms between 20 and 29 years. The AHS reports lower interest ratesa mean of 7.60 percent
compared with 8.23 in the RFS.

Appendix C looks at the responses recorded by the 2005 AHS to 64 questions related directly to
mortgage finance or that are needed for the analysis in Tables 1 through 3. Appendix C looks
for two situations that may concern analysts who would want to use the AHS for studying
mortgage finance. The first situation is the failure to elicit usable information from respondents, 7 8 either because they do not know the answer to a question or because they refuse to answer the
question. In general, dont knows occur more frequently than refusals. Dont knows and
refusals account for more than 10 percent of the cases where a response would be appropriate for
only 6 of 64 questions, and 3 of those 6 questions apply to uncommon situations.

The second situation arises when the Census Bureau needs to correct inconsistent responses
(edits) or fill in important information that respondents have failed to provide (allocations). The
number of edits is very large for two variablesthe number of lump sum home equity loans and
the number of regular mortgages. The number of edits is so large in the first case that it appears
that the Census Bureau had to correct an errant question. In the second case, the question is
asked without using the term regular, and therefore the Census Bureau may have had to edit
the answers based on other information.

There are four cases where allocations occur in approximately one-fifth of the cases with values.
All four cases involve important variables: the owners estimate of the value of the property, the
whole number and the fractional part of the interest rate, and the original mortgage balance.
Allocations equal 10 percent of the cases for the term of the mortgage. It is precisely because
these variables are so important that the Census Bureau imputes information rather than lose
cases when values are missing.

Dont knows, refusals, edits, and allocations are a common feature of any large data set that
derives information from interviews. The AHS experience described in Appendix C is relatively
good by survey standards.
Table 1-1997: Mortgage Status of the Owner-occupied Housing Stock in 1997 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Mortgage Status Total owner-occupied units 1,551,000 55,650,000 1,041,000 1,887,000 5,246,000 65,380,000 No mortgages 553,000 20,751,000 386,000 777,000 2,934,000 25,409,000 39.8% Some mortgage debt 974,000 33,629,000 628,000 1,075,000 2,199,000 38,501,000 60.2% No regular mortgage and missing, not applicable, don't know, or
refused on home equity line of credit 24,000 1,270,000 27,000 35,000 113,000 1,470,000 Percent of owner-occupied Units 2.4% 85.1% 1.6% 2.9% 8.0% Number of Mortgages Home equity line of credit only 22,000 2,505,000 38,000 42,000 101,000 2,708,000 7.0% One regular mortgage 919,000 29,790,000 565,000 1,009,000 2,051,000 34,330,000 89.2% Two regular mortgages 34,000 1,301,000 25,000 24,000 46,000 1,429,000 3.7% Three regular mortgages 0 31,000 0 0 0 31,000 0.1% Four regular mortgages 0 3,000 0 0 0 3,000 0.0% Home Equity Lines of Credit Has a home equity line of credit 128,000 7,909,000 106,000 124,000 196,000 8,463,000 13.8% Does not have a home equity line of credit 1,323,000 44,410,000 855,000 1,659,000 4,773,000 53,020,000 86.2% Don't know/refused/missing 99,000 3,332,000 80,000 104,000 277,000 3,892,000 Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $86.1 $2,591.6 $51.5 $81.5 $62.7 $2,873.5 Credit limit for home equity lines of credit $1.9 $148.5 $1.9 $1.3 $1.2 $154.8 Median ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only 72% 61% 80% 69% 85% 63% Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 78% 65% 82% 73% 90% 67% * calculated after eliminating cases where ratio equals or exceeds 200% 9 Table 1-1999: Mortgage Status of the Owner-occupied Housing Stock in 1999 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Mortgage Status Total owner-occupied units 1,534,000 58,700,000 781,000 1,931,000 5,649,000 68,600,000 No mortgages 512,000 20,910,000 283,000 828,000 2,988,000 25,527,000 38.1% Some mortgage debt 970,000 36,547,000 483,000 1,044,000 2,514,000 41,555,000 61.9% No regular mortgage and missing, not applicable, don't know, or
refused on home equity line of credit 52,000 1,243,000 15,000 59,000 147,000 1,518,000 Percent of owner-occupied Units 2.2% 85.6% 1.1% 2.8% 8.2% Number of Mortgages Home equity line of credit only 36,000 2,590,000 19,000 33,000 105,000 2,784,000 6.7% One regular mortgage 903,000 32,570,000 448,000 990,000 2,371,000 37,280,000 89.7% Two regular mortgages 31,000 1,350,000 16,000 21,000 32,000 1,450,000 3.5% Three regular mortgages 0 34,000 0 0 6,000 39,000 0.1% Four regular mortgages 0 3,000 0 0 0 3,000 0.0% Home Equity Lines of Credit Has a home equity line of credit 133,000 8,519,000 90,000 128,000 182,000 9,052,000 14.0% Does not have a home equity line of credit 1,264,000 46,850,000 655,000 1,664,000 5,107,000 55,540,000 86.0% Don't know/refused/missing 137,000 3,338,000 36,000 139,000 360,000 4,009,000 Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $87.1 $3,339.6 $47.3 $85.7 $75.0 $3,634.6 Credit limit for home equity lines of credit $2.4 $168.3 $1.7 $3.1 $2.3 $177.7 Median ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only 74% 68% 92% 72% 100% 69% Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 72% 65% 90% 68% 90% 67% * calculated after eliminating cases where ratio equals or exceeds 200% 10 Table 1-2001: Mortgage Status of the Owner-occupied Housing Stock in 2001 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Mortgage Status Total owner-occupied units 1,619,000 61,030,000 641,000 2,137,000 5,975,000 71,402,000 No mortgages 576,000 21,916,000 240,000 861,000 3,374,000 26,967,000 37.8% Some mortgage debt 1,043,000 39,114,000 401,000 1,276,000 2,601,000 44,435,000 62.2% Percent of owner-occupied Units 2.3% 85.5% 0.9% 3.0% 8.4% 100.0% Number of Mortgages Home equity line of credit only 7,000 1,484,000 8,000 34,000 43,000 1,576,000 3.5% One regular mortgage 949,000 32,650,000 350,000 1,140,000 2,444,000 37,533,000 84.5% Two regular mortgages 84,000 4,730,000 41,000 102,000 112,000 5,069,000 11.4% Three regular mortgages 3,000 215,000 2,000 0 2,000 222,000 0.5% Four regular mortgages 0 35,000 0 0 0 35,000 0.1% Home Equity Lines of Credit Has a home equity line of credit 78,000 6,052,000 62,000 142,000 78,000 6,412,000 9.5% Does not have a home equity line of credit 1,425,000 51,350,000 529,000 1,842,000 5,601,000 60,747,000 90.5% Don't know/refused/missing 116,000 3,628,000 51,000 154,000 295,000 4,244,000 Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $107 $3,931 $38 $116 $96 $4,287 Credit limit for home equity lines of credit $3 $221 $2 $4 $1 $232 Median ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only 0.67 0.65 0.80 0.62 0.85 0.66 Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 0.66 0.62 0.79 0.61 0.81 0.64 * calculated after eliminating cases where ratio equals or exceeds 200% 11 Table 1-2003: Mortgage Status of the Owner-occupied Housing Stock in 2003 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Mortgage Status Total owner-occupied units 1,600,000 62,040,000 719,000 2,202,000 5,518,000 72,080,000 No mortgages 505,000 20,370,000 229,000 760,000 3,109,000 24,970,000 35.5% Some mortgage debt 1,050,000 40,220,000 464,000 1,360,000 2,313,000 45,400,000 64.5% No regular mortgage and missing, not applicable, don't know, or
refused on home equity line of credit 45,000 1,450,000 26,000 82,000 96,000 1,699,000 Percent of owner-occupied Units 2.2% 86.1% 1.0% 3.1% 7.7% Number of Mortgages Home equity line of credit only 34,000 1,666,000 25,000 35,000 30,000 1,789,000 3.9% One regular mortgage 928,000 34,610,000 398,000 1,236,000 2,215,000 39,380,000 86.7% Two regular mortgages 81,000 3,782,000 39,000 83,000 65,000 4,051,000 8.9% Three regular mortgages 6,000 151,000 2,000 3,000 0 163,000 0.4% Four regular mortgages 1,000 11,000 0 3,000 2,000 17,000 0.0% Home Equity Lines of Credit Has a home equity line of credit 144,000 6,750,000 57,000 166,000 87,000 7,204,000 10.7% Does not have a home equity line of credit 1,320,000 51,160,000 586,000 1,864,000 5,217,000 60,150,000 89.3% Don't know/refused/missing 136,000 4,124,000 76,000 172,000 214,000 4,722,000 Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $120.3 $4,578.2 $51.0 $149.4 $95.6 $4,994.5 Credit limit for home equity lines of credit $5.6 $312.7 $2.5 $5.9 $1.7 $328.3 Median ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only 65% 64% 69% 60% 100% 65% Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 62% 63% 76% 61% 89% 64% * calculated after eliminating cases where ratio equals or exceeds 200% 12 Table 1-2005: Mortgage Status of the Owner-occupied Housing Stock in 2005 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Mortgage Status Total owner-occupied units 1,771,000 64,270,000 740,000 2,423,000 5,503,000 74,710,000 No mortgages 543,000 20,060,000 266,000 812,000 3,065,000 24,740,000 33.9% Some mortgage debt 1,174,000 42,770,000 459,000 1,525,000 2,343,000 48,275,000 66.1% No regular mortgage and missing, not applicable, don't know, or
refused on home equity line of credit 54,000 1,437,000 16,000 85,000 96,000 1,687,000 Percent of owner-occupied Units 2.4% 86.0% 1.0% 3.2% 7.4% Number of Mortgages Home equity line of credit only 42,000 2,143,000 18,000 69,000 45,000 2,316,000 4.8% One regular mortgage 1,034,000 35,670,000 389,000 1,313,000 2,271,000 40,680,000 84.3% Two regular mortgages 98,000 4,735,000 47,000 133,000 27,000 5,041,000 10.4% Three regular mortgages 0 199,000 2,000 7,000 0 208,000 0.4% Four regular mortgages 0 23,000 3,000 3,000 0 29,000 0.1% Home Equity Lines of Credit Has a home equity line of credit 186,000 9,382,000 89,000 237,000 129,000 10,020,000 14.3% Does not have a home equity line of credit 1,454,000 50,990,000 588,000 1,958,000 5,092,000 60,080,000 85.7% Don't know/refused/missing 132,000 3,898,000 63,000 228,000 282,000 4,603,000 Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $157.7 $5,935.9 $62.1 $201.6 $96.3 $6,453.6 Credit limit for home equity lines of credit $10.4 $534.7 $5.2 $11.8 $2.2 $564.3 Median ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only 64% 64% 86% 57% 91% 65% Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 61% 62% 78% 58% 85% 63% * calculated after eliminating cases where ratio equals or exceeds 200% 13 Table 1-Summary: Mortgage Characteristics of the Housing Stock: 1997-2005 All Owner-occupied Housing Units 1997 1999 2001 2003 2005 Mortgage Status Total owner-occupied units 65,380,000 68,600,000 71,402,000 72,080,000 74,710,000 No mortgages 39.8% 38.1% 37.8% 35.5% 33.9% Some mortgage debt 60.2% 61.9% 62.2% 64.5% 66.1% Number of Mortgages Home equity line of credit only 7.0% 6.7% 3.5% 3.9% 4.8% One regular mortgage 89.2% 89.7% 84.5% 86.7% 84.3% Two regular mortgages 3.7% 3.5% 11.4% 8.9% 10.4% Three regular mortgages 0.1% 0.1% 0.5% 0.4% 0.4% Four regular mortgages 0.0% 0.0% 0.1% 0.0% 0.1% Home Equity Lines of Credit Has a home equity line of credit 13.8% 14.0% 9.5% 10.7% 14.3% Does not have a home equity line of credit 86.2% 86.0% 90.5% 89.3% 85.7% Don't know/refused/missing Home Credit Extended (in $billions) Sum of original debt on outstanding regular mortgages $2,873.5 $3,634.6 $4,287 $4,994.5 $6,453.6 Credit limit for home equity lines of credit $154.8 $177.7 $232 $328.3 $564.3 Median ratio of home credit extended to owner estimate of value -
- homeowners with mortgage debt only 63% 69% 66% 65% 65% Mean ratio of home credit extended to owner estimate of value --
homeowners with mortgage debt only* 67% 67% 64% 64% 63% * calculated after eliminating cases where ratio equals or exceeds 200% 14 Table 2-1997: Characteristics of Primary Mortgages in 1997 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Origin of Primary Mortgage 1st mortgage assumed or is a wrap-around mortgage 23,000 941,000 20,000 29,000 71,000 1,084,000 3.0% 1st mortgage originated at purchase 870,000 27,210,000 508,000 964,000 1,947,000 31,500,000 88.0% 1st mortgage is a refinance 61,000 2,971,000 61,000 40,000 79,000 3,212,000 9.0% Total 953,000 31,120,000 590,000 1,033,000 2,098,000 35,800,000 Type of Primary Mortgage Fixed payment, self amortizing 711,000 24,090,000 433,000 676,000 1,635,000 27,540,000 86.5% ARM 79,000 2,511,000 54,000 148,000 160,000 2,953,000 9.3% Other 52,000 1,123,000 28,000 61,000 73,000 1,337,000 4.2% Don't know 111,000 3,403,000 74,000 148,000 229,000 3,964,000 Total 953,000 31,120,000 590,000 1,033,000 2,098,000 35,800,000 Insurance Status of Primary Mortgage FHA 119,000 4,638,000 77,000 127,000 95,000 5,057,000 15.4% VA 40,000 1,839,000 8,000 29,000 20,000 1,936,000 5.9% Rural Housing Service (formerly Farmer's Home
Administration) 8,000 329,000 0 13,000 14,000 364,000 1.1% No insurance, private mortgage insurance, or other 703,000 21,860,000 442,000 767,000 1,762,000 25,530,000 77.6% Don't know, refused, missing 82,000 2,460,000 62,000 96,000 206,000 2,906,000 Total 953,000 31,120,000 590,000 1,033,000 2,098,000 35,800,000 When Originated Cumulative
Percent 1957-1970 16,000 1,062,000 15,000 3,000 9,000 1,105,000 3.1% 3.1% 1971-1980 62,000 3,775,000 61,000 68,000 43,000 4,008,000 11.2% 14.3% 1981-1985 63,000 2,613,000 64,000 86,000 86,000 2,912,000 8.1% 22.4% 1986-1990 167,000 5,800,000 104,000 220,000 283,000 6,574,000 18.3% 40.7% 15 16 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) 1991 46,000 1,696,000 25,000 61,000 94,000 1,921,000 5.4% 46.1% 1992 73,000 2,041,000 25,000 59,000 104,000 2,302,000 6.4% 52.5% 1993 65,000 2,625,000 43,000 95,000 202,000 3,030,000 8.4% 60.9% 1994 89,000 2,635,000 63,000 114,000 208,000 3,108,000 8.7% 69.6% 1995 106,000 3,000,000 53,000 102,000 295,000 3,556,000 9.9% 79.5% 1996 146,000 3,182,000 98,000 142,000 487,000 4,055,000 11.3% 90.8% 1997 121,000 2,760,000 44,000 83,000 288,000 3,297,000 9.2% 100.0% Don't know, refused, missing 20,000 849,000 15,000 29,000 71,000 985,000 Total 975,000 32,030,000 610,000 1,062,000 2,169,000 36,850,000 Term at Origination Less than 10 years ` 726,000 8,000 26,000 302,000 1,086,000 3.1% 10 years 7,000 509,000 10,000 15,000 161,000 701,000 2.0% 11-14 years 6,000 175,000 0 2,000 111,000 294,000 0.8% 15 years 130,000 3,946,000 71,000 116,000 543,000 4,805,000 13.6% 16-19 years 0 380,000 5,000 9,000 17,000 411,000 1.2% 20 years 23,000 1,535,000 35,000 34,000 353,000 1,980,000 5.6% 21-29 years 36,000 2,001,000 47,000 42,000 105,000 2,230,000 6.3% 30 years 709,000 21,480,000 408,000 776,000 455,000 23,830,000 67.4% more than 30 years 0 0 0 0 0 0 0.0% Total 935,000 30,753,000 583,000 1,021,000 2,046,000 35,346,000 Mean 27 26 26 27 18 26 Median 30 30 30 30 15 30 17 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Current Interest Rate Cumulative
Percent Less than 6% 24,000 618,000 11,000 25,000 36,000 713,000 2.0% 2.0% 6.000% 19,000 614,000 10,000 19,000 19,000 680,000 1.9% 3.9% 6.250% 4,000 330,000 14,000 2,000 11,000 361,000 1.0% 4.9% 6.500% 22,000 738,000 2,000 17,000 10,000 790,000 2.2% 7.1% 6.750% 27,000 1,049,000 19,000 43,000 43,000 1,181,000 3.3% 10.4% 7.000% 70,000 3,238,000 57,000 117,000 71,000 3,552,000 9.9% 20.3% 7.250% 86,000 2,205,000 36,000 86,000 85,000 2,500,000 7.0% 27.3% 7.500% 137,000 3,842,000 51,000 146,000 111,000 4,287,000 12.0% 39.3% 7.750% 102,000 2,427,000 50,000 90,000 115,000 2,784,000 7.8% 47.1% 8.000% 144,000 4,419,000 96,000 127,000 271,000 5,056,000 14.1% 61.2% 8.250% 67,000 1,815,000 40,000 61,000 131,000 2,115,000 5.9% 67.1% 8.500% 78,000 2,607,000 36,000 88,000 103,000 2,912,000 8.1% 75.2% 8.750% 24,000 1,138,000 28,000 44,000 88,000 1,322,000 3.7% 78.9% 9.000% 55,000 1,885,000 27,000 40,000 181,000 2,187,000 6.1% 85.0% 9.250% 13,000 396,000 9,000 17,000 49,000 484,000 1.4% 86.4% 9.500% 11,000 709,000 23,000 23,000 23,000 789,000 2.2% 88.6% 9.750% 8,000 342,000 7,000 18,000 41,000 415,000 1.2% 89.7% 10.000% 21,000 972,000 35,000 10,000 159,000 1,197,000 3.3% 93.1% More than 10% 41,000 1,778,000 37,000 62,000 553,000 2,471,000 6.9% 100.0% Total 953,000 31,120,000 590,000 1,033,000 2,098,000 35,800,000 Mean 7.752 7.902 8.049 7.825 9.060 7.966 Median 7.375 8.000 8.000 7.375 8.375 8.000 Table 2-1999: Characteristics of Primary Mortgages in 1999 Count of Owner-occupied Housing Units Information on Structure Type Missing Single- family unit, attached or detached 2-4 Unit Structures Condos and Coops Mobile Homes Total Percent of Total (excludes missing, don't know, & refused where applicable) Origin of Primary Mortgage 1st mortgage assumed or is a wrap-around mortgage 25,000 562,000 2,000 11,000 80,000 679,000 1.8% 1st mortgage originated at purchase 737,000 23,420,000 361,000 832,000 2,035,000 27,390,000 70.6% 1st mortgage is a refinance 172,000 9,972,000 101,000 168,000 294,000 10,710,000 27.6% Total 934,000 33,960,000 464,000 1,011,000 2,409,000 38,780,000 Type of Primary Mortgage Fixed payment, self amortizing 711,000 24,090,000 433,000 676,000 1,635,000 27,540,000 86.5% ARM 79,000 2,511,000 54,000 148,000 160,000 2,953,000 9.3% Other 52,000 1,123,000 28,000 61,000 73,000 1,337,000 4.2% Don't know 111,000 3,403,000 74,000 148,000 229,000 3,964,000 Total 953,000 31,120,000 590,000 1,033,000 2,098,000 35,800,000 Insurance Status of Primary Mortgage FHA 143,000 4,969,000 67,000 133,000 88,000 5,399,000 15.1% VA 28,000 1,791,000 25,000 15,000 33,000 1,893,000 5.3% Rural Housing Service (formerly Farmer's Home
Administration) 4,000 294,000 1,000 3,000 29,000 330,000 0.9% No insurance, private mortgage insurance, or other 655,000 24,320,000 341,000 773,000 2,026,000 28,120,000 78.7% Don't know, refused, missing 104,000 2,581,000 30,000 87,000 233,000 3,034,000 Total 934,000 33,950,000 464,000 1,011,000 2,409,000 38,780,000 When Originated Cumulative
Percent 1957-1970 17,000 889,000 7,000 6,000 16,000 934,000 2.4% 2.4% 1971-1980 45,000 2,358,000 38,000 60,000 28,000 2,529,000 6.5% 8.9% 1981-1985 39,000 1,435,000 23,000 32,000 66,000 1,595,000 4.1% 13.0% 1986-1990 101,000 3,573,000 61,000 118,000 197,000 4,050,000 10.4% 23.5%

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