Interest-only mortgages and the American consumer’s unquenchable thirst for credit are key factors in the ongoing expansion of the non-agency MBS market in 2005, according to a new market analysis by Inside MBS & ABS. A record $87.2 billion of interest-only mortgages were securitized in the non-agency MBS market during the second quarter of 2005, an increase of 33.4 percent over the previous quarter. That brought year-to-date IO mortgage securitization to $152.5 billion, or a… [Two data tables included]