U.S. mortgage debt reached a record in the second quarter, exceeding its 2008 peak as the financial crisis unfolded.
Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.
The milestone for mortgage debt has been long in the making.
Americans' mortgage debt dropped by about 15% from the 2008 peak to the trough in the second quarter of 2013 and has climbed slowly since then.
The second quarter saw a steep drop in the 30-year mortgage rate, which boosted borrowers' incentive to take out a mortgage or refinance.
Alongside higher home prices, a factor behind rising mortgage debt balances in the second quarter could be homeowners tapping into home equity for cash when they refinance.
Outstanding student loan debt was $1.48 trillion in the second quarter, down $8 billion from the first quarter of this year.
https://www.wsj.com/articles/u-s-mortgage-debt-hits-record-eclipsing-2008-peak-11565708431?mod=hp_major_pos1
Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.
The milestone for mortgage debt has been long in the making.
Americans' mortgage debt dropped by about 15% from the 2008 peak to the trough in the second quarter of 2013 and has climbed slowly since then.
The second quarter saw a steep drop in the 30-year mortgage rate, which boosted borrowers' incentive to take out a mortgage or refinance.
Alongside higher home prices, a factor behind rising mortgage debt balances in the second quarter could be homeowners tapping into home equity for cash when they refinance.
Outstanding student loan debt was $1.48 trillion in the second quarter, down $8 billion from the first quarter of this year.
https://www.wsj.com/articles/u-s-mortgage-debt-hits-record-eclipsing-2008-peak-11565708431?mod=hp_major_pos1
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