Homebuyers are buying houses they can't afford in 2023, a situation that will likely cause foreclosures to surge in the coming years. With Fannie Mae reporting that the debt-to-income ratio in the Housing Market has hit an all-time high.
Homebuyers today are spending nearly 40% of their income on interest costs. Even higher than the peak of the bubble before the 2008 crash. Suggesting that this Real Estate Market will have plenty of mortgage defaults and foreclosures ahead. Some homebuyers are even taking out 1% mortgages from companies like Zillow, an eerily reminiscent trend to the mid-2000s.
Especially in a state like California, where buyers are having to spend $10,000/month on mortgage interest, taxes, and insurance. In some of the neighborhoods around Los Angeles home prices could decline by 20-30% given current levels of overvaluation.
A situation that is getting even worse now that Mortgage Rates have surged close to 7.5%. This higher mortgage rates mean the affordability levels are near the worst of all-time and are contributing ton the sky-high debt to income ratios, which increase the risk of mortgage default and foreclosure. --- REVENTURE APP: https://www.beta.reventure.app/dashboard
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
