Mortgage payments were way out of control during the boom era, but new data suggests they’ve simmered down considerably.
During the housing boom years, home prices were not the only numerical value relating to housing that spiraled out of control; in addition, mortgage payments, and the cut that they took from consumers’ incomes, soared to similar heights.
Thankfully, the market correction that took place in the ensuing years has brought those payments back down to earth, and a new numbers from Black Knight Financial Services have done a great job of showing just how pronounced that market correction has been.
Just here in Illinois, for instance, the share of income devoted to mortgage payments fell from 35 percent in July 2006 to 19 percent in Feb. 2014; that’s nearly a 50 percent drop!
See how Illinois compares with other populous states in our chart below: