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US Housing Affordability Is Worse Now Than It Was in 2008

Pro Builder

In fact, according to the Federal Reserve Bank of Atlanta, housing affordability is worse now than it was at any point in the lead up to the housing bubble in 2008, but a number of housing experts say the worst of an affordability crisis may already be behind us.

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2022 Homebuyers Are Better Protected Than House Hunters During 2008 Bubble

Pro Builder

2022 Homebuyers Are Better Protected Than House Hunters During 2008 Bubble. Today's homebuyers are backed by high credit scores and more disposable income, and few are dependent on risky adjustable-rate mortgages which led to the 2008 bubble and subsequent bust. Mon, 05/16/2022 - 10:35.

Housing 52
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Mortgages Remain Within Affordable Levels Despite Rising Prices

Pro Builder

A recent Realtor.com report found buyers put down 21% of their household income before taxes toward monthly mortgage payments in May. share of income over the past decade, but remains within the affordable range. The affordability zone for housing is anything less than 30% of the buyer's income. In August 2008, buyers put 25.3%

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Robert Shiller Predicted the Housing Bubble and Bust of 2008. Here’s His Take on the 2022 Market

Pro Builder

Robert Shiller Predicted the Housing Bubble and Bust of 2008. disposable income in 2007, but that share is down to just 3.8% Here’s His Take on the 2022 Market. Tue, 08/09/2022 - 10:27. Economists warn of trouble on the horizon as home prices begin to fall, but some firms refuse to get bearish on market conditions—here's why.

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Mortgage Equity Withdrawals Surge Amid Record Housing Wealth

Pro Builder

That “Home ATM” led to the downward spiral of the 2008 crash, but according to the CalculatedRisk Newsletter, buyers in today’s similarly heated market have taken much better precautions. For Q1 2022, the Net Equity Extraction was $131 billion, or 2.87% of Disposable Personal Income (DPI).

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Mortgage Banks Reported Negative Profits for the First Time Ever in 2022

Pro Builder

The 2022 deficit represents a 113% decrease from the previous year's average income of $2,339 per mortgage. Negative profits in 2022 are likely a result of slower housing activity caused by higher financing costs coupled with elevated home prices, leading to lower purchase and refinance volume.

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2023 industry recession to be deeper than first forecast

Construction Enquirer

Private housing new build, and private housing rm&i account for around 40% of total construction output and are forecast to be the sectors most impacted by falling household incomes and higher interest rates. contraction expected is smaller than during the construction recessions of 2008/09, 2012 and 2020. .”