Industry News

Consumers expect subprime woes to affect overall mortgage market

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More than half of consumers believe problems in the subprime mortgage market will affect the market overall, and that the government should pass legislation to help subprime borrowers avoid foreclosure, according to an Experian-Gallup poll. The Experian-Gallup Personal Credit Index survey showed about half of consumers would be uncomfortable making a major purchase like a home or car in the next three months. About 52 percent of those surveyed expected the average price of homes in their area to increase over the next year, and another 29 percent believe prices will remain about the same. Only 18 percent said they expect prices in their area will decrease. Of those who said they were "very familiar" with subprime loans, 61 percent said they expect problems in subprime to spill over into the overall mortgage market. About 55 percent said the federal government should pass legislation helping subprime borrowers keep their homes and avoid foreclosure The Experian-Gallup Personal Credit...