Americans are forced to fork over more money to buy homes, resulting in mortgage balances reaching a record high. Mortgage debt increased to $9.44 trillion during Q3 2019. The New York Federal Reserve reported in its Quarterly Report on Household Debt and Credit that mortgage balances rose by $31 billion during the period.
Total household debt – of which mortgages are the largest component – rose $92 billion during the quarter marking the 21st consecutive quarter with an increase and $1.3 trillion higher than the previous peak reached in Q3 of 2008.
The increase in mortgage debt is also indicative that Americans are taking advantage of low mortgage rates by borrowing more.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.