For much of the COVID-19 pandemic, favorable financial conditions for many middle and upper-income households have brought a rush of new homebuyers into the real estate market. In 2020 and 2021, increased savings rates and government stimulus allowed millions of people to pay down debts. These factors have helped prospective homebuyers improve on one of the key metrics that mortgage lenders consider.
Analysis found that in the Tullahoma-Manchester metro area, 38.0% of home purchase loans have a debt-to-income ratio over 36%, while 12.9% have a debt-to-income ratio over 43%. Here is a summary of the data for the Tullahoma-Manchester, TN metro area:
- Share of home purchase loans with >36% DTI: 38.0%
- Share of home purchase loans with >43% DTI: 12.9%
- Home purchase loan approval rate for >36% DTI: 79.9%
- Home purchase loan approval rate for >43% DTI: 62.8%
- Home purchase loan approval rate for all loans: 86.2%
- Median interest rate across all home purchase loans: 3.38%
For reference, here are the statistics for the entire United States:
- Share of home purchase loans with >36% DTI: 44.0%
- Share of home purchase loans with >43% DTI: 17.0%
- Home purchase loan approval rate for >36% DTI: 82.3%
- Home purchase loan approval rate for >43% DTI: 70.1%
- Home purchase loan approval rate for all loans: 86.3%
- Median interest rate across all home purchase loans: 3.25%