US Mortgage Share Of Household Debt Hits Record Low

Posted by: otterwood 1 day, 2 hours ago

Recent data from the Federal Reserve shows US household debt hit $12.3 trillion and mortgages now only make up 68%, a record low. Mortgages as a percentage of household debt have consistently declined since the financial crisis while car and student loans have seen disproportionate gains. One reason for lower mortgage growth is tighter lending standards from banks. The following chart from National Bank shows that a record 57% of new mortgages are made to borrowers with credit scores at 760 and above.

Maybe because central banks have set interest rates so low banks don’t think the returns on loans to risker borrowers are worth it.

Via Otterwood Capital Management:

http://www.otterwoodcapital.com/blog/us-mortgages-share-of-household-debt-hit-record-low/