Yahoo Finance's Brian Cheung discusses mortgage market activity being driven by borrowers with higher credit scores.
BRIAN CHEUNG: But of course, the biggest form of household debt does remain mortgages. And the housing market is hot, although it's getting a little less hot. This data comes from the New York Fed. They just released it about a few minutes ago. And it shows the incredible jump that we saw in mortgage originations since the pandemic. This is volumes. But it's also coinciding with a pretty sharp drop, as well.
And what makes all of this really notable is that all the activity is being driven by the green line here, because we're breaking this out by credit score. These are households in better credit positions, with scores above 760. You're not seeing the kind of sharp subprime mortgage origination volume that we saw prior to the 2008 financial crisis, where you saw, again, households with less than a 760 or a 720 credit score were very much a big part of the mortgage bubble. So a very different story here, although, again, these volumes we haven't seen these in a while, Akiko.
AKIKO FUJITA: $16 trillion household debt [? coming. ?]
BRIAN CHEUNG: Yeah.
AKIKO FUJITA: I mean, that-- does that point to increasing pressure coming from cost increases--
BRIAN CHEUNG: Well, I was going to say, I mean, this is a volume in terms of dollars. And that makes sense, because not only has there been, you know, just a larger amount of households looking to make moves here, but also the value of the houses that they're actually taking mortgages on have also increased, especially in a lot of the hot housing markets, when you think of New York City, San Francisco, also these up-and-coming areas like Austin and Boise, as well. We'll see, again, if those trends reverse in those markets. But coming up on the other side, as economic uncertainty looms over the United States--