Continuing an almost four-year trend, aggregate consumer debt levels have recently been reported to record their lowest since 2006.
Mortgage debt, the largest component of aggregate consumer debt, decreased by 1.5% from the previous quarter, and the lowest tally since 2006. This drop comes amidst a cumulative increase in mortgage originations, where hundreds of billions of dollars in new mortgage debt appear on consumer credit reports. In contrast, delinquent mortgages decreased from 6.3% to 5.9%.
Other components of the aggregate also increased up to 2.3% for non-real estate obligations. Increases across the board were reported for student loans, with an increase of 11% (mainly due to defaulted loans), automobile loans, with an increase of 4.2% (due to outstanding balances yet to be paid), and outstanding credit card balances. The rate of equity lines for home loans remains high at 4.9% though. These nationwide figures are indicative of the situation in Missouri.
Economic analysts see these as positive indications for a rebounding economy, wherein people are becoming more and more confident in their financial position. This fosters a level of comfort where previously delayed purchases are most likely to be made. In this financial climate, buying a home is advisable especially if 100% financing is available. First time home buyers are more likely to be among the majority who are not delinquent in their mortgages.
Are you a first-time homebuyer in Missouri or anywhere else in the United States? If so, Andrew Semple is here to help you explore loan options designed to fit your needs. Whether you’re buying your first home or looking to refinance, Andrew can help you find the financing solution that’s right for you.
Contact Andrew today to learn more about your mortgage options and get personalized guidance every step of the way.
