The volume of mortgage debt in the second quarter of 2019 have exceeded the record that was set before the financial crisis of 2008.
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.
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.