US mortgage debt has hit a record in the second quarter of 2019, exceeding the peak it reached during the 2008 financial crisis. However, delinquencies are lower and debt defaults have become less frequent than in 2008.
The New York Fed also states that mortgage balances came to represent the largest component of US household debt, and the boost in mortgage loans drove it to its highest level of $13.86 trillion.
Its total now is therefore $1.2 trillion higher, in nominal terms, than the previous peak of $12.68 trillion in the third quarter of 2008.
Wilbert van der Klaauw, senior vice president at the New York Fed, said in the report, clarifying that only 0.9% of mortgage balances are 90 or more days delinquent, down from 1.0% in the previous quarter.
However, it is a Ponzi scheme, when people borrow money and have to pay back like triple of what they borrowed. The first thing they make you pay back is the ridiculous amount of interest, then the principal.
RT. com / ABC Flash Point News 2019.