"The Lock-In Effect of Rising Mortgage Rates"
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Today, in the Calculated Risk Real Estate Newsletter: "The Lock-In Effect
of Rising Mortgage Rates"
A brief excerpt:
Here is new working paper from Feder...
4 hours ago
2 comments:
When you look at the median sales price divided by disposable personal income a very humble picture is present: even at its low point, median sales price of new houses are 6 times that of disposable personal income. So, even when the median new house price is cheap, it is still relatively expensive on a per capita basis.
The per capita American would need to save 3 times their disposable income to put down as downpayment just to buy the house with a mortgage that is 3 times their income. And consider that the personal saving rate just shot up to 6.5%! Is that even a good sign?
Luke Smith,
I think the "per capita American" is facing enormous headwinds over the long-term. Sigh.
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