Household, Mortgage Debt Decrease in Q2

Mortgage debt decreased with overall household debt in the second quarter, the ""Federal Reserve Bank of New York"":http://www.newyorkfed.org/ reported Wednesday.

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Mortgage balances stood at $7.84 trillion in the second quarter, down by $91 billion from the first quarter. The New York Fed ""report"":http://www.newyorkfed.org/research/national_economy/householdcredit/DistrictReport_Q22013.pdf explained the decrease was partly ""due to reporting gaps associated with the servicing transfer of a higher-than-usual number of loans.""

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Overall consumer debt continued to fall, ending at $11.15 trillion in the second quarter, down by $78 billion, or 0.7 percent, compared to the first quarter. In the third quarter of 2008, consumer debt peaked at $12.68 trillion.

Loan balances on home equity lines of credit (HELOC) also fell, decreasing $12 billion, or 2.2 percent, to $540 billion.

Mortgage delinquency rates also came down with debt. In the second quarter, the rate of loans past due by at least 90 days decreased to 4.9 percent compared to 5.4 percent in the first quarter.

Nevada and Florida led with the highest rate mortgages past due by 90 days or more. In the two states, over 12 percent of mortgages are seriously delinquent.

While delinquencies continued to fall, the downward trend for new foreclosures was reversed.

For the first time since the first quarter of 2012, the number of individuals who received a new foreclosure notation on their credit report bumped up, rising to about 200,000 in the second quarter.
However, the figure still represents a 65 percent decline compared to the second quarter 2009 peak when there were 566,000 new foreclosure notations on credit reports.