Financial Times FT.com

Subprime fall-out

Little evidence of subprime spillover

By Krishna Guha in Washington

Published: March 28 2007 02:10 | Last updated: March 28 2007 02:10

The map of mortgage delinquencies in the US helps reveal the truth behind the popular notion that the deflation of a property bubble is triggering a wave of defaults that could sink the US economy.

The most recent data show delinquencies are low in states where house prices have risen the most in recent years. They are high in states where the local economy is weak and in those still recovering from hurricane Katrina.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this