Is another Mortgage Crisis brewing?

“Homebuyer Debt-to-Income Ratios (DTIs) are now approaching 40% in the beginning of 2023.

That means homebuyers are now spending 40% of their gross income on mortgage and interest costs.

Same level as 2006.”

Is another Mortgage Crisis brewing?

Homebuyer Debt-to-Income Ratios (DTIs) are now approaching 40% in the beginning of 2023.

That means homebuyers are now spending 40% of their gross income on mortgage and interest costs.

Same level as 2006. 😬

(Source: FHFA) pic.twitter.com/W3LIajDMsQ

— Nick Gerli (@nickgerli1) July 21, 2023

#recession … #GFC2 US #Housing Bubble 2.0 edition#RealEstate #Mortgages #RMBS 📉👀 https://t.co/NTyGhaFdYz pic.twitter.com/Q3p6cDkBSo

— Invariant Perspective (@InvariantPersp1) July 21, 2023

Household’s networth is sharply contracting

The last 2 times this happened, a recession followed pic.twitter.com/guI3dwPd8k

— Game of Trades (@GameofTrades_) July 21, 2023

The housing market has significantly weakened following an unprecedented hiking cycle

This rate of decline in home prices typically precedes recessions pic.twitter.com/OcVwqb2EfK

— Game of Trades (@GameofTrades_) July 21, 2023