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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bozwood who wrote (11468)	7/3/2003 2:01:31 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

The top half has the lion's share of the total income but they also have the lion's share of the mortgage debt outstanding. The quintile second to the top has the highest leverage, followed by the third with the bottom two fifths having low levels of debt/income. I've spent a lot of time pouring over the IRS reports on income distribution and mortgage interest deduction. It pretty much tells the story of where the mortgage debt resides. The lower two might have high cost consumer debt, but the high cost keeps the total low even while the service is high, not having mortgage debt keeps them below par. The most appalling leverage of credit exists in the upper middle class, people with family incomes in the 120-180k/yr range, mostly because it's far more available to them and they see/saw their incomes as secure.