There are certain areas throughout the country where the subprime lending crisis seems destined to explode. (I don’t think the nation’s economy is at risk, btw.)

The Wall Street Journal created a series of graphs detailing the carnage.

Where are the biggest problems?

In the Sacramento, Calif., region, where the median household income ranks among the top 10th of major metropolitan areas, the portion of subprime mortgages delinquent for 60 days or more hit 14.1% in December — more than four times the level a year earlier. Other parts of California, as well as sections of Florida and Massachusetts — especially those areas where housing prices have surged — also logged rapid increases in delinquencies.

Miami, for example, appears to be in for it. Over 30% of the loans made last year were “subprime”. Were these investors getting 100% financing on condos they couldn’t have bought, otherwise?

What about Massachusetts?

Well, in the Worcester metropolitan area (which bleeds into Connecticut, actually), 11.54% of all loans written in 2006 were subprime; 17.22% of these were considered “delinquent” (60-days past due) at the end of the year, up from 8.64% at the end of 2005.

And, Boston?

In the Boston metropolitan area (which bleeds into NH, actually), 7.39% of all loans written in 2006 were subprime; 15.09 of these were considered “delinquent” (60-days past due) at the end of the year, up from 7.34% at the end of 2005.

If you take a look at the WSJ chart, you’ll see that Brockton is heading toward a boat-load of trouble.

But, what was going on, for real?

As Jonathan J Miller puts it:

Subprime boomed as a percentage of single family originations during the period the Fed was agressively cutting interest rates or keeping them low (2001 to 2004). Why? Since mortgage rates dropped, affordability improved significantly. Then why such rapid gains in popularity?

Again, why, with rates so low, did more and more people feel the need (not necessity) to go the subprime loan route?

More: Where Subprime Delinquencies Are Getting Worse - The Wall Street Journal

Also: Subprime Locations: No One Is Safe - By Jonathan J Miller, Matrix

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