The Benefits of Subprime Loans: Homeownership Back to 2000 Levels

By Mary Kane, 2/3/09 11:01 AM

Remember how Congress and former Federal Reserve Chairman Alan Greenspan refused to regulate subprime loans, and joined the mortgage industry in defending them as a way to extend the benefits of homeownership to all? Turns out it was all for nothing, really. New Census figures out today show home ownership rates returning to their levels of eight years ago, before the housing boom took off and anyone with a pulse qualified for a mortgage, Calculated Risk says:

So much for the homeownership gains of the last 8+ years. Gone.

Specifically, Census figures show home ownership rates in the fourth quarter of 2008 declining to 67.5 percent, about the same level as in late 2000.