Thoughtful Money with Adam Taggart · Wednesday, July 8, 2026
Nick Gerli notes that current homebuyers, and those refinancing mortgages, are taking on unprecedented debt burdens. He states that the average debt-to-income ratio for buyers is currently 40%, and for refinancers, it's even higher, surpassing levels seen during the 2006-2007 housing bubble. This high debt load is a significant factor in the current market dynamics.
“Right now, home buyers who purchase homes, of the few people who are purchasing homes, the average debt to income ratio is 40% right now.”
“For buyers purchasing homes and also refinancing mortgages, we've never seen those type of debt burdens in US history on mortgages. It's even worse than it was in the 0607 bubble.”