Buffer Depletion

Mortgage Debt Service Ratio

Mortgage payments as share of household income

What is the current Mortgage Debt Service Ratio?

MORTGAGE DEBT SERVICE RATIO
5.92% ↑ Worsening
of disposable income goes to mortgage payments

The mortgage debt service ratio isolates the share of household income consumed specifically by mortgage payments. This measure helps distinguish between mortgage-related stress and non-housing debt stress, which have moved in different directions in the current cycle. Source: Federal Reserve via FRED.

Mortgage Debt Service Ratio rising to 5.9%

Tracking worsening relative to recent baseline.

Explore Further

How has Mortgage Debt Service Ratio changed over time?

CSV Chart Card
Mortgage Debt Service Ratio over time
Mortgage debt service as percentage of disposable income
Mortgage Debt Service Ratio
Historical data
Quarterly · Federal Reserve via FRED
Period Value YoY Change
Q4 2025 5.92% +0.2 pts
Q3 2025 5.89% +0.1 pts
Q2 2025 5.83% +0.1 pts
Q1 2025 5.76% +0.1 pts
Q4 2024 5.69% +0.1 pts
Q3 2024 5.74% +0.1 pts
Q2 2024 5.7% +0.2 pts
Q1 2024 5.66% +0.1 pts
Q4 2023 5.64% +0.0 pts
Q3 2023 5.62% +0.0 pts
Q2 2023 5.54% −0.2 pts
Q1 2023 5.58% −0.0 pts

Frequently Asked Questions

What is the mortgage debt service ratio?

It measures mortgage payments as a percentage of household disposable personal income. In the current cycle, mortgage debt service has remained relatively contained because many homeowners locked in historically low rates during 2020–2021.

Why track mortgage debt service separately?

Mortgage and non-housing debt service have diverged in the current cycle. Low locked-in mortgage rates have kept mortgage debt service in check, while credit card and auto loan costs have surged. Tracking them separately reveals where the pressure actually is.

Where does this data come from?

The Federal Reserve publishes the mortgage debt service ratio quarterly as a component of the broader household debt service ratio. Available on FRED.

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Why does Mortgage Debt Service Ratio matter?

Mortgage Debt Service Ratio is one of 91 indicators in the American Distress Index's buffer depletion layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
View methodology →
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