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Americans' mortgage debt soars to a record $10 trillion

November 17, 2020. Summarized by summa-bot.

New homes under construction by Pardee Construction LLC are seen in this aerial photograph taken over the Pacific Highlands Ranch master planned community in San Diego, California, U.S., on Monday, Aug. 31, 2020. U.S. homebuyers are favoring newly built properties at the highest rate in more than a decade. Photographer: Bing Guan/Bloomberg via Getty Images

Low interest rates have helped fuel a boom in the US housing market: Last quarter Americans' mortgage debt climbed to a record high of nearly $10 trillion, the Federal Reserve Bank of New York reported Tuesday.

New York (CNN Business)Low interest rates have helped fuel a boom in the US housing market: Last quarter Americans' mortgage debt climbed to a record high of nearly $10 trillion, the Federal Reserve Bank of New York reported Tuesday.

At the beginning of this month mortgage rates fell to a record low -- the 12th record low in 2020.

Between July and September, mortgage debt increased by $85 billion to a total of $9. 86 trillion, a record high, according to the report.

The New York Fed's report was full of records or near-records.

For example, when combining new home loans as well as refinancings, the value of new mortgages was even higher at $1. 05 trillion.

That's the second-highest volume on record, rivaled only by the refinancing boom of 2003, according to the report.

A rush to buy cars also propped up auto loans and leases, which climbed to the highest level on record: $1. 36 trillion.

Meanwhile, rates of loan delinquencies fell in the third quarter, helped by the forbearance programs created by the CARES Act that allowed for deferral of payments, as well as deferrals offered by lenders.

Only 132,000 consumers had a bankruptcy notation on their credit reports between July and September, a new historical low, the NY Fed said.

Overall, according to the report, household debt climbed by $87 billion to a total of $14. 35 trillion last quarter.

That's a new high, beating the previous record notched in the first quarter of the year.

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