Black Knight Mortgage Monitor for January: "$275 billion in equity withdrawn" in 2021

Today, in the Calculated Risk Real Estate Newsletter: Black Knight Mortgage Monitor for January: "$275 billion in equity withdrawn" in 2021

A brief excerpt:

And on the payment to income ratio (this is high):

• Rising home prices and interest rates continue to put significant pressure on home buyers

• The principal and interest payment required to buy the average-priced home is up $186 (14%) over the first two months of the year and $417 (37%) year-over-year

• It now requires 27.5% of the median household income to purchase the average home – well above the long-term affordability benchmark of 25%, though still below the high of 34% during the pre-Great Recession bubble

• From 2013 through 2019, a payment-to-income ratio of 21.5% universally corresponded with home price deceleration – a trend that's been shattered in the post-pandemic world

There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/