![]() At the latest reading this month, Black Knight's mortgage-payment-to-income ratio was now up to 31%-the highest reading since September 2007. home, according to Black Knight, a mortgage technology and data provider. Instead, they're concerned about the next crop of homebuyers.īack in December, the typical American household would have to spend 24% of its monthly income to make a mortgage payment on the average-priced U.S. But they aren't who economists are worried about. homeowners are in a fairly strong financial position. Among other things, household balance sheets appear in better shape, and excessive borrowing doesn’t appear to be fueling the housing market boom,” write the Dallas Fed researchers. “There is no expectation that fallout from a housing correction would be comparable to the 2007–09 global financial crisis in terms of magnitude or macroeconomic gravity. In addition, subprime mortgages are less of a worry these days, given the 2010 Dodd-Frank Act outlawed many of the shady loans that plagued the aughts. As of the fourth quarter of 2021, that figure is just 3.8%. households were spending 7.2% of disposable personal income on mortgage debt payments. At the height of the 2000s housing bubble, U.S. For starters, homeowners are in much better shape now than they were heading into the 2008 meltdown. house prices are again becoming unhinged from fundamentals."īut even if we're in a housing bubble, the Dallas Fed researchers don't think it would be a 2008 repeat. The Dallas Fed researchers were blunt in their assessment: "U.S. ![]() Or worse: We could wind up in another full-fledged housing bubble.īack in March, researchers at the Federal Reserve Bank of Dallas sent a shockwave through the industry after releasing a paper titled Real-Time Market Monitoring Finds Signs of Brewing U.S. There's a growing chorus of economists speculating that if home price growth doesn't abate soon, the housing market could eventually overheat.
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