III - Home Ownership

MORTGAGE FINANCE AND HOUSING

SNAPSHOT OF HOUSING IN AMERICA, 2006-2007

	2006	2007	Percent change (1)
Homeownership rate (2)	68.8%	68.1%	-0.7%
New home sales (3) (units)	1,051 (000)	776 (000)	-26.2
Existing home sales (3) (units)	5.7 million	4.9 million	-13.0
Existing home price (3) (median)	$228,200	$217,900	-4.5
Home equity	$10.3 trillion	$9.6 trillion	-6.5
Mortgage debt	$10.1 trillion	$10.5 trillion	3.7
Mortgage refinancing	$1.4 trillion	$1.2 trillion	-16.8
Residential fixed investment	$786.6 billion	$640.7 billion	-18.5
(1) Homeownership rate change expressed in percentage points. Percent changes on other items are calculated from unrounded numbers. (2) Percentage of households that are homeowners. (3) Single-family. Note: All dollar figures are in 2007 dollars. Source: U.S. Department of Commerce, Board of Governors of the Federal Reserve System; Bureau of Economic Analysis; Mortgage Bankers Association of America; Census Bureau; National Association of Realtors.

In 2007 the national median existing home price fell 1.3 percent to the lowest level since 2004. This was the first decline since recordkeeping began in 1968. The median represents a typical market price where half of the homes sold for more and half sold for less.

MEDIAN SALES PRICE OF EXISTING SINGLE FAMILY HOMES, 1970-2007

Year	Median sales price	Average annual percent increase (1)	Year	Median sales price	Average annual percent increase (1)
1970	$23,000	NA	2000	$143,600	4.5%
1975	35,300	8.9%	2003	178,800	8.4
1980	62,200	12.0	2004	195,400	9.3
1985	75,500	4.0	2005	219,600	12.4
1990	96,400	4.9	2006	221,900	1.0
1995	114,600	3.5	2007	219,000	-1.3
(1) From prior year shown. NA=Not applicable. Source: National Association of Realtors.

U.S. HOME OWNERSHIP RATES BY RACE AND ETHNICITY, 2003-2007

(Percent)

	2003	2004	2005	2006	2007
All households	68.3%	69.0%	68.9%	68.8%	68.1%
Whites	75.4	76.0	75.8	75.8	75.2
Blacks	48.1	49.1	48.2	47.9	47.2
Hispanics	46.7	48.1	49.5	49.7	49.7
Asians/others	56.3	59.8	60.1	60.8	60.0
Source: U.S. Department of Commerce, Census Bureau.

HOME OWNERSHIP RATES BY REGION, 1960-2007

(Percent, end of year)

Year	United States	Northeast	Midwest	South	West
1960	62.1%	55.5%	66.4%	63.4%	62.2%
1970	64.2	58.1	69.5	66.0	60.0
1980	65.6	60.8	69.8	68.7	60.0
1990	63.9	62.6	67.5	65.7	58.0
1996	65.4	62.2	70.6	67.5	59.2
1997	65.7	62.4	70.5	68.0	59.6
1998	66.3	62.6	71.1	68.6	60.5
1999	66.8	63.1	71.7	69.1	60.9
2000	67.4	63.4	72.6	69.6	61.7
2001	67.8	63.7	73.1	69.8	62.6
2002	67.9	64.3	73.1	69.7	62.5
2003	68.3	64.4	73.2	70.1	63.4
2004	69.0	65.0	73.8	70.9	64.2
2005	68.9	65.2	73.1	70.8	64.4
2006	68.8	65.2	72.7	70.5	64.7
2007	68.1	65.0	71.9	70.1	63.5
Source: U.S. Department of Commerce, Census Bureau.

HOME OWNERSHIP RATES, 1900-2007

Source: U.S. Department of Commerce, U.S. Census Bureau, Census of Housing.

SELECTED CHARACTERISTICS OF HOMEOWNERS, 2003 AND 2005

(000)

	2003	2005	Percent change, 2003-2005
Total owner occupied units	72,238	74,931	3.7%
By race
White	63,126	65,023	3.0
Black	6,193	6,471	4.5
Other (1)	2,300	2,704	17.6
Hispanic (2)	5,106	5,752	12.7
By household income
$0 to $14,999	8,481	8,637	1.8
$15,000 to $29,999	11,381	10,724	-5.8
$30,000 to $49,999	14,513	14,385	-0.9
$50,000 to $99,000	23,692	25,831	9.0
$100,000 or more	14,171	15,353	8.3
(1) Other=American Indian, Eskimo, Aleut, Asian and Pacific Islander. (2) Hispanic is considered an ethnic origin rather than a race and is tallied separately. Hispanics may report themselves as any race. Note: Latest data available. Based on surveys conducted every two years. Source: U.S. Department of Commerce, U.S. Census Bureau; U.S. Department of Housing and Urban Development, Office of Policy Development and Research.

HOME OWNERSHIP RATES BY HOUSEHOLD INCOME, 2005

Source: U.S. Department of Commerce, U.S. Census Bureau; U.S. Department of Housing and Urban Development, Office of Policy Development and Research.

CONVENTIONAL HOME PURCHASE LOANS ORIGINATED BY RACIAL/ETHNIC IDENTITY AND INCOME OF BORROWERS, 2001 AND 2005

	2001		2005
Racial/ethnic identity	Number	Amount ($000)	Number	Amount ($000)
American Indian/Alaska native	11,728	$1,433,683	47,839	$8,793,875
Asian	159,065	29,969,188	363,946	93,693,887
Black or African American	166,321	19,053,140	537,704	77,001,949
Hispanic or Latino	252,057	32,127,010	892,096	159,056,336
White	2,654,809	381,410,111	5,117,165	930,676,836
Income (1)
Less than 50%	215,715	14,560,654	303,153	23,786,267
50% to 79%	580,423	54,432,378	1,056,104	108,795,506
80% to 99%	421,845	48,868,204	826,399	105,703,124
100% to 119%	396,689	52,407,885	775,205	115,122,298
120% or more	1,610,825	316,577,886	3,571,548	861,295,547
Income not available	144,730	24,169,831	355,945	68,248,730
(1) Percentage of metropolitan area median. Metropolitan area median is the median family income of the metropolitan area in which the property related to the loan is located. Source: Federal Financial Institutions Examination Council.

MORTGAGE STATUS AND REFINANCING ACTIVITY OF HOMEOWNERS, 2005

Mortgages currently on property	Owner occupied housing units
None, owned free and clear (1)	24,776,000
Regular and/or home equity mortgage (2)	48,394,000
Regular mortgage	44,652,000
Home equity lump sum mortgage	4,385,000
Home equity line of credit	10,044,000
Line of credit not reported, no regular or lump sum	1,694,000
Refinancers
Units with a refinanced primary mortgage	17,685,000
Primary reason: to receive cash	2,375,000
(1) Free of regular mortgages, which include all mortgages not classified as home equity or reverse. (2) Figures may not add to total because more than one category may apply to a unit. Note: Latest data available. Based on surveys conducted every two years. Source: U.S. Department of Commerce, U.S. Census Bureau; U.S. Department of Housing and Urban Development, Office of Policy Development and Research.

REVERSE MORTGAGES

Reverse mortgages are special mortgages that allow homeowners over age 61 to sell their homes to a bank in exchange for monthly payments, a lump sum or a line of credit. The Home Equity Conversion Mortgage (HECM) is the federally insured reverse mortgage product. It is insured by the Federal Housing Administration, a branch of the U.S. Department of Housing and Urban Development. In 2007 HECMs accounted for over 90 percent of all reverse mortgages.

ANNUAL ORIGINATION VOLUME FOR HOME EQUITY CONVERSION MORTGAGES (HECMs), FISCAL YEAR 2003-2007 (1)

(1) HECMs are federally insured reverse mortgage products.
(2) The U.S. Department of Housing and Urban Development ran out of insurance authority and could not insure additional HECMs during the last two weeks of September 2003 (the last month in FY 2003).
(3) Through August 31, 2007; fiscal year ends September 30.

Source: National Reverse Mortgage Lenders Association.