Part 6/10:
Mortgages are the largest debt Americans typically take on, amounting to approximately $12.8 trillion in 2025. The structure of mortgages has evolved significantly, promoting widespread homeownership for decades. However, with fluctuating interest rates, particularly rising to around 7%, affordability is now decreasing for many potential buyers.
Despite rising delinquencies, most borrowers who secured low rates in recent years have built equity in their homes, effectively weathering initial storm clouds. But new foreclosures and increased delinquent payments have emerged as potential red flags in the housing market.