Q155. Suppose 25% of the mortgages written in the first years of this century were subprime (meaning the borrowers were not very credit-worthy) and all were 5 year adjustable such that after the fifth year the monthly payments would go way up. In the market in question there is approximately 5% turnover housing each year. The housing stock in the market consists of one million units. Research has shown that 33 1/3% of subprime adjustable mortgages go into default under current conditions when they go past their five year mark (and these conditions are expected to continue for some time) when they adjust.