AgentMarkets & Economy

NYC near top of nation in over-leveraged homes, report says

WalletHub reveals exceedingly high mortgage debt-to-income ratio in NYC
  • The mortgage debt-to-income ratio in NYC is a whopping 1,590 percent, and the debt-to-house value ratio is 113 percent.
  • NYC is in the 99th percentile and among the most over-leveraged cities in the nation.
  • NYC data and debt figures do not include the surrounding metro cities.

One of the cities where over-leveraging (taking on too much debt in mortgage) is largely occurring is New York City, according to a recent report from WalletHub, which found NYC has an average mortgage debt of $556,171. While mortgage rates are currently entering three-year lows despite the Federal Reserve’s December rate hikes that caused hopeful homebuyers (and their agents) slight panic, low monthly payments might coerce buyers into purchasing before the time is right. Fear of rising interest rates could push some into locking down 30-year interest rates ahead of planned or recommended schedules, so when things seem good, a slew of buyers purchase ahead of their time and take out larger loans, adding to overleveraging in major metropolitan areas. [graphiq id="hBLYKl4NKwl" title="Mortgage Debt Balance Per Capita in New York" width="600" height="523" url="https://w.graphiq.com/w/hBLYKl4NKwl" link="http://time-series.findthedata.com/l/12644/Mortgage-Debt-Balance-Per-C...