Is another Mortgage Crisis brewing?
Homebuyer Debt-to-Income Ratios (DTIs) are now approaching 40% in the beginning of 2023.
That means homebuyers are now spending 40% of their gross income on mortgage and interest costs.
Same level as 2006. 😬
(Source: FHFA)
DTI also includes credit card debt and any other outstanding loans, not just the mortgage PITI. It’s still bad, because that means more people are spending almost half their gross paycheck on debt, which leaves very little for food or discretional spending.
DTI also includes credit card debt and any other outstanding loans, not just the mortgage PITI. It’s still bad, because that means more people are spending almost half their gross paycheck on debt, which leaves very little for food or discretional spending.