3 Analytical devices to possess evaluating financial lending fictional character and domestic harmony sheet strength Chart step 1 Overvaluation tips mean the amount of RRE speed misalignment, and generally are utilized, together with other associated indicators, in order to measure the new disadvantage dangers so you can RRE cost Sources: ECB and you can ECB calculations.Notes: Committee an effective) The newest overvaluation quotes are derived from the average from one or two tips: an enthusiastic econometric design and home rates-to-earnings proportion deviation out-of historical average.