step three Analytical tools having assessing home loan credit character and you may family equilibrium sheet resilience

Graph step 1

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Overvaluation tips suggest the amount of RRE speed misalignment, and are generally made use of, with other related evidence, so you’re able to measure this new downside threats in order to RRE pricing

Sources: ECB and you can ECB data.Notes: Panel a beneficial) The new overvaluation estimates derive from the common out of a couple actions: a keen econometric design and you may house rate-to-money proportion departure regarding historic average. Getting details, come across Field step 3 Tools to own finding a potential misalignment regarding property costs from tips throughout the issue of the newest ECB Financial Balances Feedback, and/otherwise Container step three A product-depending valuation metric to possess property issue of brand new ECB Financial Balances Feedback. Continue reading