Jun 8, 2017
Fannie and Freddie made a huge change to mortgage under writing last Friday.
DTI (debt to income) ratio has been increased to 50% from 43%.
The net effect is that it will increase purchasing power by 20%.
This is a huge win for home sellers in the back half of this year.
Read the press release - http://www.mortgagenewsdaily.com/05312017_fannie_mae_lending.asp
- Saddles home buyers with more debt
- You're pulling the worst buyers into an inflated market
- When the market cools then you'll have more buyers on the margin
- These buyers will become forced sellers
- Vicious reversion to the mean will take place
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