by Calculated Risk on 2/07/2022 10:18:00 AM
Monday, February 07, 2022
Black Knight Mortgage Monitor for December: "Worst affordability levels since 2008"
Today, in the Calculated Risk Real Estate Newsletter: Black Knight Mortgage Monitor for December: "Worst affordability levels since 2008"
A brief excerpt:
And on the payment to income ratio:There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/
• It now takes 25.8% of the median household income to purchase the average home with 20% down and a 30-year mortgage, up from the 22.4% required at the end of Q3 2021
• Interest rate jumps in recent weeks have pushed us rapidly above the long-term, pre-Great Recession average payment-to-income ratio of 25%, resulting in the worst affordability levels since 2008
• While a 20.5% ratio has been the tipping point between market acceleration and deceleration over the past decade, severe inventory shortfalls are keeping home prices running hotter than they might otherwise