alt Hacker NewsActually I don't think this metric goes far enough. In my opinion a homeowner should "own" their home. I.e should have majority equity in his or her home. An owner who pays 3% down is basically a risk bearer for the bank. The bank really owns the majority and is renting out the "owner". I don't think my opinion is fringe. It does measure the risks of not being able to make rent and getting evicted.
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That's not a useful metric, because the mortgage interest deduction means that it's almost always financially optimal to take out a mortgage even if you have the assets to pay cash.
Yes. Unfortunately, the Minneapolis Fed would get a whole lotta push-back if they suggested any such metric. That risk bearing & interest-rent is a near-perfect way for the 0.01% to milk the "could afford a house" demographic.
50 year mortgage incoming to raise the home ownership rate to 90%