Good News: Mortgage Debt Reaches 6-Year High
According to the Equifax’s latest report on national consumer credit trends, first mortgages grew by 2.8% compared to the same time in 2013. The last time such increase was observed was September 2008. The total balance of first-time mortgages is also increasing. Currently at $7.97 trillion, that’s the highest it has gotten since December 2011.
The report has other good news too: “total balance of first mortgages 90-days past due or in foreclosure is less than $27- billion: a six-year low and a decrease of nearly 27% from the same time a year ago.” According to chief Equifax economist Amy Andrew Cutts the trends is poised to see even more improvement with the advancing of the spring and summer home buying seasons, because that’s when more new loans are being signed. Improving economic conditions and increasing home values, on the other hand, should reduce the likelihood of defaults.
Read the full article at the Housing Wire.