WASHINGTON – The mortgage debt held by Americans has dropped to its lowest level in five years, thanks in part to foreclosures and fewer people buying homes.
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The Federal Reserve reported that the volume of outstanding home mortgages declined to $9.88 trillion from $9.94 trillion as of June 30, the lowest figure reported since December 2006. Mortgage volume peaked at $10.6 trillion in early 2008.
The Mortgage Bankers Association has predicted that mortgages to buy homes in Q4 likely will be approximately $80 billion, the lowest figure reported since 1991. The Federal Reserve said declining property values have wiped away more than $4 trillion in real estate values.
