Friday, November 15, 2013

Home ownership quickly becoming unaffordable as mortgages rise to 40% of household spending

The bursting of the 2007 housing bubble occurred because of many factors, but a primary reason for the collapse was due to the inability of Americans to afford the cost of rising mortgage payments.  When the crash occurred, the average amount of household income being spent on mortgages and rents was at or above 40%, and it led to a wave of foreclosures that are still haunting the market to this day.

Yet thanks to Federal Reserve policies of Quantitative Easing, and the drive to re-create the housing bubble once again, history is now repeating itself as consumer costs for a residence, both in home ownership and in rents, are reaching that magical number of 40% just six years after the last crisis.

Read more on this article here...


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