Charts of the Day
Home prices are now around 35% higher than they were at the peak of the housing bubble.
At the same time, average 30-year mortgage rates have fallen from around 6.75% in 2006 to just under 3%.
And real disposable personal income is up by nearly 40% over the same timeframe.
The result? Mortgage debt service payments as a percentage of personal disposable income are a whopping 52% below where they were before the bubble burst.
Source: St. Louis Federal Reserve
While no rational person would argue that housing is currently priced affordably, the financial data tells a story that is nothing like what we experienced 15 years ago.
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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