Cash-Out Refinance on Your Rental Property
January 15, 2020
Credit card balances surge to series high amid stagnant mortgage market.
Mortgage balances remained relatively unchanged at $12 trillion in Q2 2023, reflecting a stabilization in the housing market, according to the Quarterly Report on Household Debt and Credit issued Wednesday by the Federal Reserve Bank of New York’s Center for Microeconomic Data.
This stagnation comes in large part due to declining mortgage originations and slowing home prices. Mortgage originations, including refinances, stood at $393 billion in the second quarter, an increase of $70 billion from the first quarter.
The report revealed a slight uptick in total household debt, which increased by $16 billion (0.1%) to $17.06 trillion. Among the significant findings, credit card balances saw an increase of $45 billion, hitting a high of $1.03 trillion, marking a 4.6% quarterly increase. Credit card accounts expanded by 5.48 million to 578.35 million, and aggregate limits on such accounts increased by $9 billion, now standing at $4.6 trillion.
Other findings included:
- Auto Loans: Balances rose by $20 billion, continuing an upward trend seen since 2011. The volume of newly originated auto loans, including leases, was $179 billion, reflecting high values of originated loans.
- Student Loans: Balances fell by $35 billion to $1.57 trillion, with delinquencies at historic lows due to the federal repayment pause in effect until Aug. 31, 2023.
- Other Balances: This category, including retail cards and consumer loans, increased by $15 billion.
- Delinquency Rates: These were roughly flat in the second quarter of 2023, with slight credit card and auto loan increases.
“Credit card balances saw brisk growth in the second quarter. And while delinquency rates have edged up, they appear to have normalized to pre-pandemic levels,” Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed, said. The report also highlighted a minimal increase in new foreclosure notations on credit reports and stated that new foreclosures have remained low even since the CARES Act moratorium was lifted.
Author: Christine Stuart | NMP
Original Article: Click here
A great benefit of homeownership is the accumulation of equity over time. It’s a good idea to explore your options and decide what path to take to clear high-interest personal debt. A closed-end second mortgage from Optionwide Financial will allow you to leverage your homes equity to consolidate debt. Most credit card interest rates hover between 15 and 30%. A second mortgage from Optionwide will carry a significantly lower interest rate, you can borrow up to $550,000 from your home’s equity, and since our second mortgage is fixed and amortized over 30 years, you can expect a reasonable monthly payment, no pre-payment penalty, and no surprises.
Stop paying ridiculous interest to creditors, take control of your financial freedom! Pay down your personal debt, make renovations to your home, purchase an investment property or use your equity to start a business. We are here to help you every step of the way. Want to learn more? Our mortgage consultants are here to offer advice and explain how you can use your home equity to free yourself from financial stress.
Call: (877) 342-0181 or Apply Online
