First Mortgage Debt Up to Highest Balance Since 2011

First mortgage balances last month saw their largest annual increase since September 2008, Equifax reported Monday.

According to the company’s latest National Consumer Credit Trends Report, the total balance of first mortgages in February came up to $7.97 trillion, a 2.8 percent year-over-year increase and the highest balance since December 2011.

As of the most recent report, delinquent first mortgages—30 or more days past due—represent 5.65 percent of outstanding balances, a decline of more than 22 percent from the same time in 2013. Meanwhile, the total balance of first mortgages 90 or more days overdue or in foreclosure came down to less than $270 billion, a six-year low and a yearly drop of nearly 27 percent.

“The decline in mortgage balances from accelerated amortization and foreclosure write-offs has finally been overcome by increases in mortgage debt due to home purchase lending,” said Equifax chief economist Amy Crews Cutts.

Cutts continued, “This trend should gain additional momentum as we head into the spring and summer home buying seasons, which increases the volume of new loans coming in, while at the same time rising home values and improving employment conditions should push down the incidence of mortgage defaults.”

In other findings, the total limit of new home equity revolving credit through 2013 was $90.5 billion, representing a five-year high and a 15.7 percent increase. As of February, the total balance of home equity revolving loans was $485.3 billion, a decrease of 6.8 percent from the same time last-year and a five-year low. The total number of loans outstanding was 10.3 million, the lowest in a decade.

Meanwhile, the total balance of home finance write-offs year-to-date as of February was $17.9 billion, 41 percent lower than last year. The total balance of home finance debt was $8.58 trillion (including first mortgage and home equity), marking the first time in four years in which home finance debt increased year-to-year for three straight months.