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In regression, the independent variables are hypothesized to affect the dependent variable in an additive and linear way. An F-test can be used in regression, which is a procedure to determine whether there is more variability explained by the regression or unexplained by the regression. The real question is "are skyrocketing housing costs the reason for so many new foreclosures?" The number of foreclosure notices sent to California homeowners last quarter increased to its highest level in almost ten years, is this the result of flat appreciation, slow sales, and post teaser-rate mortgage resets? Or is that folks are just getting in way over their heads?
Defaults tend to happen after a certain length of time and today's activity reflects a peak in the number of home loans made back in the summer of 2005...
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