The U.S. Consumer Financial Protection Bureau released new rules on mortgage lending that limits the debt-to-income ration for people taking on conforming mortgages to 43 percent of a household’s monthly income.
In high priced states like Connecticut, what does this mean? Could it depress prices? Could it slow down sales?
We’ll be checking into this as the day goes forward.
One thing to consider, using the most recent Labor Department statistics on wages, the average private sector weekly wage in Connecticut was $960.50, which works out to about an average monthly pay of $4,162, before any taxes.
That means, a person cannot have debt of more than $1,789 per month to qualify for a conforming loan, leaving the person about $2,372.30 in gross wages. That’s before taxes, before groceries, before electricity, heat, clothes, gasoline for the car, insurance for the car, etc.