Report: Households Better Prepared for Rate Increase This Time
According to a new report released by Wells Fargo on Wednesday, households across the board in the United States are in a better position than ever before to stave off a fixed mortgage rate increase.
Part of this can be attributed to the fact that many Americans are starting to save more, providing households with an extra cushion against rising borrowing costs.
In addition, the report points to a lower level of financial obligation. Whereas in 2004 the average household allotted 16.7 percent of its income to debt, property taxes and lease payments, now – more than a decade later – that number is down to 15.3 percent.
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