Now that the “qualified mortgage” rules have been put into writing and the debt ratio of 43% is going to be common place going forward, many will not be able to qualify for a mortgage.
So, what do these families do? Rent forever? Find higher paying jobs, that don’t exist? We have a nearly 8% unemployment rate and a much higher rate if you include those that are under-employed, what do these families do?
Once interest rates start moving upward, less and less potential homeowners will be able to qualify for a mortgage and their American dream is gone.
When there are less folks coming into the market place to buy homes, what happens to real estate values?
By: Amilda Dymi
"In recent years data have shown the legacy of the housing crisis was disproportionately negative on low-income and minority homeowners. New findings indicate another crisis in the making for these buyers."