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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Victor Lazlo who wrote (27359)	2/3/2003 9:38:39 PM
From: LLCF	Read Replies (1) \| Respond to of 36161

<I recently read a stat in busweek claiming that overall personal debt to income ratios are not any higher that avg for the last 30 years.> There is much confusion on the topic IMO. First of all gross income numbers arent much good as the skew as to what % of people take that income home [or should we say to their 4 homes] has exploded. Also, we have to remember that having the same debt burden at the top of a cycle as the bottom doesn't seem so great to me. DAK

To: Victor Lazlo who wrote (27359)	2/3/2003 11:01:18 PM
From: loantech	Read Replies (1) \| Respond to of 36161

Victor I have spent most of the last 20 years working in the home lending business. I can tell you that debt to income ratios and underwriting qualifying standard allowable ratios have both risen substantially over time. Computer models and loosening of rules now allow total debt ratios as high as 50-55% and in some cases higher than that.In the past they did not exceed 41% for FHA or 38% for conventional loans. Tom

To: Victor Lazlo who wrote (27359)	2/4/2003 11:05:49 AM
From: Silver Super Bull	Read Replies (1) \| Respond to of 36161

Victor, RE: <The higher end houses are definately taking longer to sell and are being repriced lower, but the middle and starter home segments won't get hurt much unless things get significantly worse economically, which i wouldn't rule out.> I guess it depends what area you are talking about. "Starter" and "middle class" home values can fluctuate wildly depending upon area. In many "overheated" U.S. areas starter houses can be at $300,000 or more, having risen dramatically the last few years. I don't think they will be immune to declining home values. DB