What 30 Million Applications Reveal about Mortgage Denial Thresholds

Manu García and Carlos Garriga

On the Economy from Federal Reserve Bank of St. Louis

Abstract: A debt-to-income ratio of 43% was long considered to be a threshold for mortgage applicants. This analysis finds the true threshold is 50%.

Keywords: mortgage denials; debt-to-income ratio (search for similar items in EconPapers)
Date: 2026-06-04
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Persistent link: https://EconPapers.repec.org/RePEc:fip:l00001:103361

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