Photo: Mike Segar / Reuters
The volume of mortgage debt in the U.S. in the second quarter of 2019 have exceeded the record that was set before the financial crisis of 2008. About this newspaper The Wall Street Journal, citing data from the Federal reserve Bank of new York.
Currently, the volume of mortgage debt is $ 9.4 trillion, while 11 years ago, he was at 9.2 trillion. The reason for this low mortgage rates in the U.S. and the fact that Americans tend to borrow to refinance existing mortgages.
Meanwhile, the publication notes that the “quality” of the mortgage debt in 2019 is higher than in 2008. Banks impose very high requirements for potential borrowers, in connection with unpaid mortgages have become a rarity.
One of the main causes of the global financial crisis of 2008 was a “bubble” in the mortgage market. Then too risky policy of banks led to massive non-repayment of previously issued loans. This was followed by impairment released on their bonds owned by banks and investment funds.
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