I understand the "Why Falling Housing Prices Are…. Good?" statement. Discussing how supply and demand often reach an equilibrium of sorts based upon striking a 'value' position for the resource in question may be useful.
I suggest you expand the inflation thread. The increased expenditures due to inflation on other household needs such as food, gas, entertainment, services, education, etc. are going to have a direct impact on available mortgage funds.
My experience is Lenders generally require mortgages to be less than 1/3 or 33% of their monthly gross income. I don't recall any personal examples of people (or Lenders) telling me they allowed 40%.
You may want to add another category between a $100k mortgage and $500k mortgage since most people don't qualify or can relate to $500k and $1,000k mortgages.
Good Report and enjoyed the topic.
A few quick observations and comments.
I understand the "Why Falling Housing Prices Are…. Good?" statement. Discussing how supply and demand often reach an equilibrium of sorts based upon striking a 'value' position for the resource in question may be useful.
I suggest you expand the inflation thread. The increased expenditures due to inflation on other household needs such as food, gas, entertainment, services, education, etc. are going to have a direct impact on available mortgage funds.
My experience is Lenders generally require mortgages to be less than 1/3 or 33% of their monthly gross income. I don't recall any personal examples of people (or Lenders) telling me they allowed 40%.
You may want to add another category between a $100k mortgage and $500k mortgage since most people don't qualify or can relate to $500k and $1,000k mortgages.
Shalom.
-- Duane