Over the past several years, there has been a significant rise in the amount of foreclosures on homes. During the early to mid part of the decade, the housing market was enjoying a profitable era with the amount of new home sales reaching significant heights. With the rise in home sales, the value of homes also rose dramatically. With a strong economy, home owners were upgrading by selling their smaller and more affordable homes and purchasing larger and more expensive homes. The latter half of 2005, was the start of a downward trend in the housing market. New home sales began to drop throughout 2006 at an alarming rate.
In 2007, with the economy beginning to trend downward, individuals who purchased homes with adjustable rate mortgages, realized the monthly mortgage payments were no longer affordable and as a result, ended up in foreclosure procedures which caused a scare in the banking industry.
With banks becoming increasingly cautious about whom to approve mortgages for, there was also a decline in individuals refinancing their mortgages in hopes of reducing their rates.
With the rise of foreclosures reaching an alarming rate there has been an effect on the overall U.S economy resulting in a slow down in all other sectors. There has also been an increase in the number of bankruptcies from individuals seeking protection form losing their homes due to the inability to pay their mortgage and facing foreclosure.
This essay will discuss and research the discussed problem and the opportunities to correct the problem. There are data sets created in tabular format and the Five Step Hypothesis Process with the results found by using an ANOVA test. The ANOVA is based on the fact that two independent estimates of the population variance can be obtained from sample data. The team will...