Foreclosures to surge in the coming Years
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.
Credit to : Reventure Consulting