So, as the Fed begins to raise rates, Freddie has finally responded by increasing the debt-to-income ratio allotment to 50%. As far as I understand, this means a borrower can have more debt, and/or take on more house payment, than previously allowed.

So - this means our buyers won't be able to buy more house, but will be able to purchase the same house they could have before the rate hike, right? It also allows buyers who had too much debt, like our lovely Millennial's, to enter the marketplace.

Is this bearing out in other regions? In the Pacific Southwest we are seeing that 50% is still not enough. Too many of my recent buyer leads are wallowing in student debt and it's killing their ratios.
Santa Monica Realty by the Sea

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