Housing Demand, Real Mortgage Rates and the Tilt Problem

  • July 24, 1988
  • • Written by: Michael T. Bond

Spring/Summer 1988, Vol 13, No 1

Abstract: The tilt burden occurs when mortgage rates rise and the initial ratio of debt service payments to homeowner income rises, excluding many buyers from the market. This article deals with the impact of the tilt burden on the demand for housing in the United States as well as the impact on housing demand from changes in real mortgage rates.