US Housing

US Housing

US Housing Market Update

16 April, 2018

Jump in debt-to-income ratios not yet a concern

Fannie Mae’s announcement last August that it would accept mortgages with debt-to-income (DTI) ratios as high as 50% triggered a sharp rise in the share of high DTI mortgages. But we doubt that change poses a risk to the housing market. Other lending standards, such as credit scores, are still tight. And, absent a significant roll-back of mortgage lending regulations, the chance of a return to the ultra-loose lending environment of the mid-2000s is low.

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon

Get the App

The Capital Economics apps are a great way for clients to keep up to date with our latest research.

Capital Economics AppsFind out more