Certain financial milestones were reached in the second quarter of 2019. According to the Federal Reserve Bank of New York, mortgage balances rose by $162 billion in the second quarter, reaching $9.40 trillion. This represents a $150 billion increase over the former high mark of $9.3 trillion, which was reached in the third quarter of 2008.

On a macro scale, mortgages held by homeowners represent the largest component of household debt. Such loans, which also include refinancings, increased $130 billion to $474 billion in the second quarter of 2019.

The high point, in terms of liabilities, is underscored by the increase in household incomes, which have also grown significantly since 2008.

Total U.S. household debt has been on the rise since 2013. In the second quarter of 2019 it increased by 1.4% from the first quarter to $13.86 trillion. This represents the 20th consecutive quarterly increase.

On the equity side of the equation, available homeowner equity reached an all-time high of $6.3 trillion in the second quarter of 2019, representing a 26% premium over the previous peak recorded in 2006, prior to the housing bubble.

According to Black Knight, the average homeowner had $140,000 in available equity to borrow against. Approximately 55% have interest rates that are at least .75% higher than the current rates.

According to Freddie Mac, the average U.S. rate for a 30-year fixed mortgage fell to a three-year low of 3.55% in August.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/