got a lot more attention than I expected after I posted a link on social media. In it, Ritholtz Wealth management’s Michael Batnick shows how different and safer the U.S. housing market has become over the past 14 years. The same, unfortunately, is not the case for the domestic real estate market.
The financial crisis included a correction not only in U.S. home prices but also in household debt. The U.S. household debt-to-GDP ratio was 100 per cent just before the financial crisis and now it’s 80 per cent. The Canadian debt-to-GDP ratio did not correct during the financial crisis. As high as 113 per cent at the end of 2020, the ratio now stands near the U.S. peak at 97 per cent.
Royal Bank management noted that higher rates would trigger higher payments or longer amortization for 80,000 mortgages. However, they also noted that well below 0.5 per cent of customers would even require a phone call for support.
If I cannot read even own free story I have no experience upon which to subscribe?!