U.S. mortgage burden gets lighter in second quarter

WASHINGTON Tue Oct 29, 2013 3:51pm EDT

A real estate sign, which indicates the 'new price', stands outside a three-bedroom and one-bath home in Burbank, California October 9, 2007. REUTERS/Fred Prouser

A real estate sign, which indicates the 'new price', stands outside a three-bedroom and one-bath home in Burbank, California October 9, 2007.

Credit: Reuters/Fred Prouser

Related Topics

WASHINGTON (Reuters) - Mortgage payments in the second quarter took the smallest bite out of U.S. households' after-tax income in at least three decades, Federal Reserve data showed on Tuesday.

Homeowners spent 7.9 percent of after-tax income on mortgage payments during the period, the lowest in records going back to 1980 and a tenth of a point less than in the prior quarter.

The drop came despite a sharp increase in mortgage rates in May, and could represent a combination of rising incomes and a rush by homeowners to refinance loans before rates rise further.

Interest rates remain historically low, largely thanks to years of ultra-easy monetary policy at the Federal Reserve.

Overall debt service costs for households were the equivalent of 9.9 percent of after-tax income between April and June, which was just above a record low.

(Reporting by Jason Lange; Editing by James Dalgleish)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.