Why Voters (and Politicians) Are Anxious
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•Another reason that home wealth may shrink is the increased use of nontraditional financing--adjustable-rate mortgages and interest-only loans. As interest rates rise, many homeowners face higher payments or even foreclosure
Percentage of all mortgages with adjustable interest rates
26.2% 2001-2006
All figures adjusted for inflation where applicable. Sources: Census Bureau; Bureau of Labor Statistics; Bureau of Economic Analysis; Federal Reserve; Mortgage Bankers Association
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