According to the Wall Street Journal, in 2006 a little over 14% of all new mortgage originations in the San Francisco MSA (which includes San Mateo and Redwood City) were “high-rate” loans. In San Jose (which includes Sunnyvale and Santa Clara) the percentage was 19%. And in Oakland (which includes Fremont and Hayward) it was 25%.
And while those percentages are likely to be both more and less than many expected, we will offer a few other MSA’s for perspective: New York 28%, Los Angeles 32%, Chicago 33%, Phoenix 34%, Las Vegas 36%, and Miami 48%.
And now, we’re not sure whether to be relatively relieved (in terms of the Bay Area) or absolutely frightened (in terms of the country as a whole).
∙ The United States of Subprime [Wall Street Journal]
∙ Wall Street Journal Interactive Graphic: Subprime Tidal Wave [WSJ]