Re: Mortgages taking smaller bite out of income
Hank wrote:
Twenty Years Later, Buying a House Is Less of a Bite
What a funny article. In 1985, mortgage rates averaged 12.4%, and mortgage debt service (according to the Fed) took up 9.3% of a homeowner’s after-tax income. In 2005, interest rates have averaged 5.8%, and the debt service bite, 10.5%. So interest rates have fallen by more than half, yet the servicing burden has risen. Interest rates better stay low or some people will be in trouble.
Doug