1 in 7 Home buyers backed out in July

[alebrewer]

Yeah - that pesky BS DTI number... not sure why they even calculate it.

TransUnion Analysis Finds Rise in Consumer Payment-to-Income Ratios is a Clear Indicator for Potential Mortgage Delinquency Increases

Serious consumer-level delinquency rates (60+ DPD) for mortgage loans—while still at historically low levels—have gradually risen from 0.89% in Q2 2023 to 1.14% in Q2 2024 and 1.27% in Q2 2025. As mortgage delinquency levels have risen, a new analysis by TransUnion (NYSE: TRU) highlights the...

newsroom.transunion.com

 

[J Grant]

National :: Median Home Price - $401,667 Median Household Income - $79,537

San Jose :: Median Home Price - $1,400,000 Median Household Income - $136,299
Boston :: Median Home Price - $800,000 Median Household Income - $110,000
Austin :: Median Home Price - $435,000 Median Household Income - $91,500



Let's just think about this.

Boston has median payment-to-income ratio higher than the national average of 48%, yet it is one of the strongest markets in the country.
San Jose has a median payment-to-income ratio of almost 100%. Yet it remains a solid market.
Austin has a median payment-to-income ratio slightly lower than the national average, yet it is one of the weakest markets in the country.

It doesn't mean anything. I can't stand it.

You are making a simplistic argument. Areas with strong markets despite skewered income to price ratio often have cash sales and a number of high worth invidualds who do not rely on income from jobs or professions.

The media income and price impacts working people and the reality is that more and more working people are being shut out of the market. They are shut out by competition from investor buyers, cash buyers and RE trusts.

 

[Joe Flacco]

People talking about the ratio are the ones making a simplistic argument. It's meaningless.

 

[Mark K]

People talking about the ratio are the ones making a simplistic argument. It's meaningless.

All real estate is local. Some people are unable or unwilling to dig deeper than the headlines on most any subject.

 

[Joe Flacco]

All real estate is local. Some people are unable or unwilling to dig deeper than the headlines on most any subject.

It's not really that it is a local issue. It is that the group that the ratio impacts is only first time homeowners.

132 million households (65% are homeowners and 40% of homeowners have no mortgage)
5.7 million home sales per year (5 million existing home sales + 700k new home sales)
1.1 million are first time home buyers

Move up or move down buyers have equity from prior ownership.

So out of 46.2 million households that are not homeowners, 1.1 million need to be willing and able to buy. The median household income on a national level or the local level is not representative of the 1.1 million that buy.

 

[djd09]

...must be the appraisers fault

 

[Fernando]

Is that a reality or an artifact of simple variability in pricing? Isn't a real problem with buyers is finding out after they make an offer that the property taxes are astronomical and property insurance is either way high or made from unobtanium.

When a buyer finds out their mortgage payment just increased by $1500 a month due to insurance and taxes being rolled into the note, then they get that deer in headlight effect.

Sorry, I was wearing my real estate agent hat when I said prices appear to be increasing from early this year.
Wearing my appraiser hat, I see prices are stable. No need to justify a price increase.

 

[Terrel L. Shields]

I have no pity on those who use their home as an ATM.

 

[Fernando]

I have no pity on those who use their home as an ATM.

Why not enjoy the equity from the home?
No need to let the heirs enjoy the money when you're gone.

 

[OSU Beavers]

I just had a 1004 Conventional Purchase appraisal order cancel. Decent $900 fee with a 10 day turn time. Buyers backed out.