Subprime Mortgage Crisis and Its Economic Influence

The default rate of the subprime mortgage in the U.S.sharply increased in 2006,especially the rate of adjustable rate mortgage,and the subprime mortgage crisis is spreading in the America.The paper reviews the history of the subprime mortgage market,the origin of the crisis and its influence on American economy.The author focuses on the discussion of the influence of the crisis on three levels including financial institutions,house keepers,house designers and house selling agents.The results show that the influence of the crisis on American economy is limited.Economy of the U.S.will be prosperous in the future for its continuous innovations.