The amount of debt held by Americans reached a record high last quarter, after having previously surpassed its pre-crisis peak earlier in the year. According to a report released this week by the Federal Reserve Bank of New York, currently Americans collectively hold more credit card, auto and mortgage debt than at any other time in U.S. history.
Total household debt reached $12,84 in the second quarter, up $552 billion on a year-over-year basis. An increase in home prices coupled with a higher rate of home buying nationwide led to a $329 billion increase in mortgage over last year.
Mortgages account for the bulk of the debt total – 67% as of last year. Tougher qualifying standards for mortgages have led to Americans holding debt having higher credit scores than in the past. More than 40 percent of debt is held by those with a credit score of 740 or higher.
Meanwhile, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.125 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.