Homeownership is the cornerstone of the American middle class and the foundation of the American dream. Recent low-interest rates, Wall Street demand for mortgage debt securities and new mortgage products have enabled millions of Americans to buy homes for the first time in their lives. However, these developments have fueled extraordinary growth in subprime mortgage lending to people with low incomes and weak credit, which has led to a crisis in the housing market.
Pew is no longer active in this line of work, but for more information visit the Subprime Mortgages Project on PewHealth.org.