Tag Archives: Mortgage Debt

The Federal Reserve Bank of New York revealed Tuesday that aggregate consumer debt rose in 2013's final quarter, citing an increase of $241 billion dollars. The figure represents the largest quarter-to-quarter increase since 2007. The report commented, "All groups, even those with subprime credit scores, increased their mortgage balances in 2006. Now, the modest mortgage balance increases we see are mainly coming from high credit score borrowers."

Household net worth improved $1.3 trillion in the second quarter--half as fast as the first quarter--as real estate values grew $626.7 billion, the Federal Reserve reported Wednesday in its quarterly Flow of Funds report. But, with a drop in mortgage debt--including home equity loans and lines of credit--from $9.39 trillion in the first quarter to $9.34 billion in the second--homeowner equity grew to 49.8 percent in the second quarter from 48.1 percent in the first.

The debate over TARP is only one of several five-year anniversaries we mark this month, all related to the mortgage meltdown.

Commercial and multifamily mortgage debt outstanding decreased for the first time in five quarters during the first quarter of this year, according to the Mortgage Bankers Association (MBA).

Household net worth jumped by $3 trillion in the first quarter as real estate values grew $836 billion, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. With a drop in mortgage debt, owners' equity in real estate increased a sharp 2.5 percentage points to its highest level since 2007. Owners' equity as a percentage of real estate value has been on a steady upward trajectory since dropping to 36.3 percent in the first quarter of 2009.

Overall, the commercial banks and savings institutions covered by the FDIC reported an aggregate net income yielding of $40.3 billion this quarter, an impressive $5.5 billion (or 15.8 percent) rise from last year's $34.8 billion. This statistic marks the 15th consecutive quarter that has reported an overall earnings increase. The average return on assets (ROA) also increased to a positive 1.12 percent, up from last year's 1.00 percent and likewise represents the highest quarterly ROA since 2007.

Commercial and multifamily mortgage debt in Q4 was up by $21.8 billion, or 0.9 percent, from the previous quarter and up $29.7 billion, or 1.2 percent, from the fourth quarter of 2011.

Mortgage debt for U.S. households was roughly unchanged quarter-over-quarter, according to the Federal Reserve Bank of New York's Household Debt and Credit report. Mortgage debt stood at $8.03 trillion in Q4, making up the largest component of household debt. At the same time, overall consumer debt increased by $31 billion to $11.34 trillion, a slight 0.3 percent increase from the third quarter. Despite the growth, the report noted consumer debt has still seen a significant decline after peaking at $12.68 trillion.

According to a report from SaveUp.com, the average total debt load for an average member of Generation X or Y (those under the age of 47) is close to $37,000, slightly higher than the national average debt load of $36,157. Of the two groups, Gen X appears at first to be worse off, with the average person harboring a debt load of $46,972 compared to the Gen Y average of $28,930. However, SaveUp.com finds that more than 60 percent of Gen Xers' debt comes from mortgage and student loans--considered "good debt" that helps build assets.

Nearly one-third--29.3 percent, or 20.6 million--of homeowners own their homes free and clear of mortgage debt, according to a recent analysis from Zillow. Zillow also revealed what factors might influence the percentage of homeowners who own their home outright in certain areas. For one, metro areas with lower home values tended to have a higher rate of mortgage-free homeowners since smaller loan amounts can be paid off more quickly. Age and credit rating were also contributing factors.