Why Are the Several States Experiencing High Foreclosure Rates?:<br />An Analysis of Arizona, California, Florida, Indiana...
Introduction:<br />In 2009-2010  thousands of Americans are having their mortgages foreclosed.<br />The credit markets are...
Literature Review<br />According to Haughwout, Okah, and Tracy (2009), mortgage delinquencies beginning in 2007 have led t...
Economic Analysis<br />The amount of housing counseling grants was substituted for foreclosure rates.<br />Predictor varia...
Overall Correlation<br />
Arizona Correlation<br />
California Correlation<br />
Florida Correlation<br />
Indiana Correlation<br />
Michigan Correlation<br />
Montana Correlation<br />
Nevada<br />
Conclusion<br />Unfortunately, available data was not optimal.<br />More causes of foreclosure would have made the study m...
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Why Are the Several States Experiencing High Foreclosure Rates?: An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada

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Powerpoint slideshow for my ECON 492 Capstone Paper titled, &quot;Why Are the Several States Experiencing High Foreclosure Rates?: An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada. This presentation only discusses R Squared Analysis, and does not take into account other regression parameters.

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Why Are the Several States Experiencing High Foreclosure Rates?: An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada

  1. 1. Why Are the Several States Experiencing High Foreclosure Rates?:<br />An Analysis of Arizona, California, Florida, Indiana, Michigan, Montana, and Nevada<br />
  2. 2. Introduction:<br />In 2009-2010 thousands of Americans are having their mortgages foreclosed.<br />The credit markets are seizing up, and the housing markets are unstable.<br />Similar to foreclosure crisis in the 1890s and 1930s, as long as confidence is lacking in the credit markets, and housing markets are messy, economic recovery is unlikely.<br />Why are foreclosures occurring? My hypothesis is that we need a state-by-state solution, because different states are experiencing high foreclosure rates for different reasons.<br />
  3. 3. Literature Review<br />According to Haughwout, Okah, and Tracy (2009), mortgage delinquencies beginning in 2007 have led to policy attempts to solve the problem.<br />
  4. 4. Economic Analysis<br />The amount of housing counseling grants was substituted for foreclosure rates.<br />Predictor variables were the 30 year mortgage rate, unemployment rate, high school dropout rate, and the CPI.<br />The data was placed in Excel and a regression was run for the predictor variables as a whole, and then for each predictor individually. <br />For the purposes of this paper, a high correlation implies that a predictor is the culprit in causing foreclosure.<br />
  5. 5. Overall Correlation<br />
  6. 6. Arizona Correlation<br />
  7. 7. California Correlation<br />
  8. 8. Florida Correlation<br />
  9. 9. Indiana Correlation<br />
  10. 10. Michigan Correlation<br />
  11. 11. Montana Correlation<br />
  12. 12. Nevada<br />
  13. 13. Conclusion<br />Unfortunately, available data was not optimal.<br />More causes of foreclosure would have made the study more interesting.<br />Based on results, though, thesis was proven; different states do have different causes of foreclosure.<br />Therefore, any attempt to tackle the foreclosure crisis should be crafted on a state-by-state basis.<br />Hopefully policy makers will come to the same conclusion, and realize a one-fix-all approach will be unsuccessful and wasteful.<br />

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