The combined home, farm, multifamily and commercial debt is up 1.2% as the total mortgage debt in the U.S. hits a record high $15.8 trillion in Q3 of 2019, according to the Federal Reserve.
"The biggest chunk of debt was held on homes, at $11.1 trillion, followed by commercial, with $3 trillion of loans, multifamily at $1.6 trillion and farms at $254.1 billion, according to the Fed data," reported HousingWire.
"Mortgage debt is rising as U.S. real estate values gain. The value of all U.S. owner-occupied homes increased to a record $29.2 trillion in the third quarter, 21% higher than the bubble peak reached in 2006, according to the Fed."
The report revealed that low mortgage rates have contributed to the increase in mortgage debt as it naturally increases real estate values across the country. Loan volume has increased and buyers are approved for higher-balanced mortgages, allowing them a higher bidding power in what looks to be a substantial domino effect.
"Home loan rates tumbled through most of 2019 as the American economy showed signs of softening and investors worried about the fallout from trade wars," according to HW.
Yesterday Freddie Mac reported that the average 30-year fixed-rate mortgage hit its lowest mark in the last three months and it is forecasted that homebuyer demand should be on the rise.
To learn more about the current level of mortgage debt in the U.S., click here.