Direxion Daily Real Estate Bear 3x (DRV)

[tw0122]

During much of the pandemic's housing boom, historically low mortgages shielded homebuyers, to a degree, even as home prices shot up 34.4% over the past two years. Now, with mortgage rates back up, buyers have no choice but to feel the full brunt of home price growth. In December, the typical American household would have to spend 24% of its monthly income to make a mortgage payment on the average-priced U.S. home, according to Black Knight, a mortgage technology and data provider. As of last week, Black Knight’s mortgage-payment-to-income ratio is now up to 34%. That reading, which is the highest since 2006, is giving some economists housing bubble déjà vu.