Good News: Mortgage Debt Reaches 6-Year High

Published: Mar 26, 2014

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.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.