by Calculated Risk on 10/27/2006 11:44:00 PM

As a supplement (excel file) to the GDP report, the Bureau of Economic Analysis provides an estimate of aggregate mortgage interest and the effective rate of interest on mortgage debt outstanding. This supplement includes mortgage interest for tenant occupied residential housing, so we have to wait for the Fed's Flow of Funds report to calculate mortgage equity withdrawal for Q3.

However this report does suggest that MEW in Q3 was about the same level as Q2.

Click on graph for larger image.

This graph is based on the BEA supplement, and shows mortgage debt as a percent of disposable personal income.

Not surprisingly, mortgage debt as a percent of DPI is at an all time high.


The second graph shows mortgage interest as a percent of DPI.

During the late '80s housing boom, mortgage interest payments, as a percent of DPI, peaked at 6.3% in 1989. Currently mortgage interest payments as a percent of DPI are a record high of 6.5% - even with relatively low interest rates.