Mortgage Debt Continues to Decline
Mortgage Debt Continues to Decline
Mortgage Debt Continues to Decline
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January 3, 2012 (Chris Moore)

American mortgage debt fell to its lowest levels in five years in the third quarter of 2011 as foreclosure activity wiped out home loans and a weak housing market resulted in fewer and smaller loans according to the Federal Reserve’s latest Flow of Funds Report.

Total household debt in the third quarter declined at an annual rate of 1.2 percent, continuing a trend that started in the first quarter of 2008. That compares to a 0.6 percent decline in the second quarter and a 1.8 percent decline in the first quarter.

Total American household debt peaked in the second quarter of 2008 at $13.929 trillion and has declined every month since, reaching $13.208 trillion in the most recent quarter.

Home mortgage debt in the quarter fell at an even faster pace, declining 1.8 percent, down from a 2.4 percent decline in the second quarter and a 2.6 percent decline in the first quarter.

A tepid housing market that has seen prices and sales fall over 30 percent since the market’s peak and a continued elevation in foreclosure activity helped to contribute to a $45.4 billion drop in mortgage debt from the second quarter to the third.

Mortgage debt peaked at $10.611 trillion in the first quarter of 2008 and has declined almost every month since then to $9.875 trillion by the end of the third quarter of this year.

The last time that total amount of mortgage debt was that low was in the fourth quarter of 2006 when total mortgage debt stood at $9.868 trillion.

Total consumer debt, which includes installment payment loans like credit cards and auto loans, has stayed relatively stable during that time. In the fourth quarter of 2006, Americans owed $2.416 trillion in consumer debt. In the third quarter of this year, that amount stood at $2.476 trillion.

Consumer debt has been on the rise in the last year, increasing every quarter for the last four quarters. Consumer debt peaked in the first and second quarter of 2008 at $2.609 trillion.

Tags: Federal Reserve, Flow of Funds, mortgage debt, consumer debt, household debt

Source:
Federal Reserve

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Learn About
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January 3, 2012 (Chris Moore)

American mortgage debt fell to its lowest levels in five years in the third quarter of 2011 as foreclosure activity wiped out home loans and a weak housing market resulted in fewer and smaller loans according to the Federal Reserve’s latest Flow of Funds Report.

Total household debt in the third quarter declined at an annual rate of 1.2 percent, continuing a trend that started in the first quarter of 2008. That compares to a 0.6 percent decline in the second quarter and a 1.8 percent decline in the first quarter.

Total American household debt peaked in the second quarter of 2008 at $13.929 trillion and has declined every month since, reaching $13.208 trillion in the most recent quarter.

Home mortgage debt in the quarter fell at an even faster pace, declining 1.8 percent, down from a 2.4 percent decline in the second quarter and a 2.6 percent decline in the first quarter.

A tepid housing market that has seen prices and sales fall over 30 percent since the market’s peak and a continued elevation in foreclosure activity helped to contribute to a $45.4 billion drop in mortgage debt from the second quarter to the third.

Mortgage debt peaked at $10.611 trillion in the first quarter of 2008 and has declined almost every month since then to $9.875 trillion by the end of the third quarter of this year.

The last time that total amount of mortgage debt was that low was in the fourth quarter of 2006 when total mortgage debt stood at $9.868 trillion.

Total consumer debt, which includes installment payment loans like credit cards and auto loans, has stayed relatively stable during that time. In the fourth quarter of 2006, Americans owed $2.416 trillion in consumer debt. In the third quarter of this year, that amount stood at $2.476 trillion.

Consumer debt has been on the rise in the last year, increasing every quarter for the last four quarters. Consumer debt peaked in the first and second quarter of 2008 at $2.609 trillion.

Tags: Federal Reserve, Flow of Funds, mortgage debt, consumer debt, household debt

Source:
Federal Reserve

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

January 3, 2012 (Chris Moore)

American mortgage debt fell to its lowest levels in five years in the third quarter of 2011 as foreclosure activity wiped out home loans and a weak housing market resulted in fewer and smaller loans according to the Federal Reserve’s latest Flow of Funds Report.

Total household debt in the third quarter declined at an annual rate of 1.2 percent, continuing a trend that started in the first quarter of 2008. That compares to a 0.6 percent decline in the second quarter and a 1.8 percent decline in the first quarter.

Total American household debt peaked in the second quarter of 2008 at $13.929 trillion and has declined every month since, reaching $13.208 trillion in the most recent quarter.

Home mortgage debt in the quarter fell at an even faster pace, declining 1.8 percent, down from a 2.4 percent decline in the second quarter and a 2.6 percent decline in the first quarter.

A tepid housing market that has seen prices and sales fall over 30 percent since the market’s peak and a continued elevation in foreclosure activity helped to contribute to a $45.4 billion drop in mortgage debt from the second quarter to the third.

Mortgage debt peaked at $10.611 trillion in the first quarter of 2008 and has declined almost every month since then to $9.875 trillion by the end of the third quarter of this year.

The last time that total amount of mortgage debt was that low was in the fourth quarter of 2006 when total mortgage debt stood at $9.868 trillion.

Total consumer debt, which includes installment payment loans like credit cards and auto loans, has stayed relatively stable during that time. In the fourth quarter of 2006, Americans owed $2.416 trillion in consumer debt. In the third quarter of this year, that amount stood at $2.476 trillion.

Consumer debt has been on the rise in the last year, increasing every quarter for the last four quarters. Consumer debt peaked in the first and second quarter of 2008 at $2.609 trillion.

Tags: Federal Reserve, Flow of Funds, mortgage debt, consumer debt, household debt

Source:
Federal Reserve

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.