Slide 6:

The title of this slide is "Homeowner Financial Obligations: Percentage of Personal Disposable Income." The line-graph chart on this slide is entitled "Homeowner Financial Obligation Ratios." To the right of the chart are three bullet points: (1) Consumer debt as a percentage of disposable income peaked in 2001; (2) Mortgage debt hit its peak in the first half of this year; and (3) Total obligations peaked in 2001 but are still quite high.

This chart shows the ratio of homeowners' financial obligations to disposable personal income. The chart shows three lines: one is total homeowner financial obligations ratio (FOR); the second is mortgage debt, and the third is consumer debt. The total FOR was just under 14 percent in 1980 and rose to approximately 15.5 percent in 1987. The total FOR dropped to approximately 14.5 percent in 1993 but gradually trended up to almost 16 percent in 2004. Mortgage debt was approximately 8.5 percent in 1980 and rose steadily to peak at approximately 10.5 percent in 1991; it then trended downward slightly to reach approximately 10 percent in 2004. Consumer debt was approximately 5.5 percent in 1980, bottomed at approximately 4.5 percent in 1992, and rose gradually to reach approximately 6 percent in 2004. The source of the chart is the Federal Reserve.

The source of the slide is Cambridge Consumer Credit Index.