Based on research from Learnbonds.com indicates that U.S. mortgage debt is now the highest since the Great Depression in 2008.
The outstanding US mortgage debt which has been growing steadily in recent years hit a record high of $15.8 trillion in Q3 2019.
Rising Outstanding Mortgage Debt
Following the Great Depression, the outstanding mortgage debts steadily declined to hit a low of $13.3 trillion in the third quarter of 2013. However, since the quarter, the debts have been increasing to hit the latest highs of $15.8 trillion in 2019.
The data also highlights the outstanding mortgage based on property type and holder. One to four families had debts worth $11,074,883 by close of 2019 Q3. Under this category, the rates have also been on the rise since 2015. The same trend can also be seen under the multi-family residence property.
Home mortgages are among the largest component of household debt across the United States. However, the mortgage rates have been low since the last quarter of 2018. The Federal Reserve Bank resorted to lowering the rates in the wake of trade uncertainty which affected the global economic growth.
Amid the rising debt, we have a steady increase in both new and existing houses sold across the US market. Estimation indicates that by close of 2019, a total of 6.44 million houses might have been sold which represents a 26.2% increase in the last decade.
According to the Mortgage Bankers Association's newly released Mortgage Credit Availability Index (MCAI), U.S. mortgage credit availability decreased in December 2019.
The MCAI fell by 3.5 percent to 182.2 in December.
Based on research from Learnbonds.com indicates that U.S. mortgage debt is now the highest since the Great Depression in 2008. The outstanding US mortgage debt which has been growing steadily in recent years hit a record high of $15.8 trillion in Q3 2019.
Based on CoreLogic's latest Home Price Index for November 2019, U.S. home prices rose both year over year and month over month. Home prices increased nationally by 3.7% from November 2018. On a month-over-month basis, prices increased by 0.5% in November 2019.
The oldest Millennials, who will turn 40 in 2020, have lived through a turbulent decade of housing marked first by the initial recovery from the Great Recession, then the extraordinary home value growth of recent years.
According to the National Association of Realtors, existing-home sales fell in November 2019, taking a small step back after October's gains. The Northeast and Midwest both reported growth last month, while the South and West saw sales decline.
Demand for design services in November 2019 increased at a modest pace for the second month in a row. During November, both the new project inquiries and design contracts scores were positive, posting scores of 60.9 and 52.9 respectively.
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