Outstanding balances on first mortgages is getting close to the industry record high of $9.04 trillion reached in 2008
Outstanding balances on first mortgages is getting close to the industry record high of $9.04 trillion reached in 2008.
Data from Equifax shows that balances in February reached $8.81 trillion, up more than a trillion dollars since the trough of 2013.
The credit bureau’s National Consumer Credit Trends Report shows that 7.27 million new first mortgages were originated in 2017, a decrease of 13.2% year-over-year as interest rate rises softened demand for refinance loans.
"Despite nearing the pre-Great Recession peak in nominal terms, the market for first mortgages is in a much healthier place than in 2008, with low interest rates and normalized home prices supporting affordability" said Gunnar Blix, Deputy Chief Economist for Equifax.
Home equity loan balances and accounts outstanding have been steadily declining since their respective peaks at the end of 2007. Balances are down 65.2% from peak, while accounts are down 60.8% as of January 2018.
Outstanding HELOC balances are $418 billion, down 6.2% in total balances from a year ago, and down 38.2% from the May 2009 peak of $677 billion.
Outstanding consumer finance revolving accounts grew 5.3% over the past year, from 49.3 million in February 2017 to 51.9 million in February 2018.
Balances on bank cards, student loans and consumer finance loans are all up year-over-year.
