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>As for what’s pushing households to tap into their rainy-day funds, Deutsche Bank recently pointed to the 15 percent year-on-year increase in household interes

>As for what’s pushing households to tap into their rainy-day funds, Deutsche Bank recently pointed to the 15 percent year-on-year increase in household interest payments. Levels of payments rising at a similar pace preceded the onsets of the last two recessions. Maybe this isn't what the article is referring to, but assessments have skyrocketed in my city as they have in every other city. That means higher property taxes and a noticeably higher mortgage payment every month. I can absorb it but wonder how much it can keep going up before something buckles and a lot of people can't keep absorbing the increases.

djrogers 7y ago
Property tax assessments are not tied to your mortgage payment - if your mortgage payment changes monthly you've got a bad mortgage. Also, before you assume a local factor is influencing national spending, keep in mind that the way property taxes are assessed isn't universal - for example in California, your property tax assessment can only go up by 2% /yr - so it's not possible for them to 'skyrocket'.
- Junk_Collector 7y ago
  He is probably referring to the fact that most people pay their property taxes out of escrow holdings along with their property insurance. Payment into the escrow account is part of your monthly bill and is rolled up into the "mortgage" payment even if it is not actually part of the mortgage. Most people won't even request these broken out by line. In those situations, you would expect your monthly payment to change year to year based on property tax assessment. Since it seems that many people can't differentiate between total tax rates and tax refunds, it seems reasonable to assume that people would consider their property tax escrow part of their mortgage payment.
- Loughla 7y ago
  The only thing I can come up with is the OP is implying escrow is making his payment change monthly?
- strict9 7y ago
  Property tax payment dispersals are handled by bank, which is the rule and not exception in Chicago. And I promise you, assessments here have gone up orders of magnitude more than 2%. In some parts of the city it's gone up by 30%[1] Point taken about an anecdotal experience affecting national spending. https://www.chicagotribune.com/news/ct-met-cook-county-property-tax-assessment-up-down-20181024-story.html https://www.chicagotribune.com/news/ct-met-cook-county-prope...

djrogers 7y ago

Property tax assessments are not tied to your mortgage payment - if your mortgage payment changes monthly you've got a bad mortgage. Also, before you assume a local factor is influencing national spending, keep in mind that the way property taxes are assessed isn't universal - for example in California, your property tax assessment can only go up by 2% /yr - so it's not possible for them to 'skyrocket'.

Junk_Collector 7y ago
He is probably referring to the fact that most people pay their property taxes out of escrow holdings along with their property insurance. Payment into the escrow account is part of your monthly bill and is rolled up into the "mortgage" payment even if it is not actually part of the mortgage. Most people won't even request these broken out by line. In those situations, you would expect your monthly payment to change year to year based on property tax assessment. Since it seems that many people can't differentiate between total tax rates and tax refunds, it seems reasonable to assume that people would consider their property tax escrow part of their mortgage payment.
Loughla 7y ago
The only thing I can come up with is the OP is implying escrow is making his payment change monthly?
strict9 7y ago
Property tax payment dispersals are handled by bank, which is the rule and not exception in Chicago. And I promise you, assessments here have gone up orders of magnitude more than 2%. In some parts of the city it's gone up by 30%[1] Point taken about an anecdotal experience affecting national spending. https://www.chicagotribune.com/news/ct-met-cook-county-property-tax-assessment-up-down-20181024-story.html https://www.chicagotribune.com/news/ct-met-cook-county-prope...