Millennials who are saddled with debt such as costly mortgages might well bear the brunt of higher interest rates in the months to come, a new RBC report argues.

Older millennials, adults aged 35 to 44, had debt-to-disposable income ratios around 250 per cent in 2019, while Freestone noted that metric was roughly 150 per cent for the same age group in 1999.

Can confirm we’re sitting around 250% but this is after exercising significant restraint to not take on as much mortgage as the banks would have given us. Everyone I know who bought over the last couple of years went all out and I can’t imagine them being any lower than 300-350%.

  • sadreality@kbin.social
    16·
    10 months ago

    Bidding up used cars during covid was peak bubble behavior

    Work trucks costing what a start home used to cost a decade ago

    I guess with at truck you work AND live in it

      • sadreality@kbin.social
        22·
        10 months ago

        Well generational shortages caused by under construction and foreign money resulted in the bubble…

        Either way, nobody was forcing people to play stupid games because “this is the new normal”

        They can goose the system whatever way they want, but only low interest rate can sustain these prices. It does not look like they can lower the benchmark rates so people swimming naked will be exposed.