Mortgage Debt Likely To Stay Low

Consumers have been making strides to reduce mortgage debts in recent months, saving more money and reducing delinquencies. However, a new report suggests they may be paying more for less, when it comes to their homes.

Mortgage debt, which makes up the largest share of consumer debt - currently comprising roughly 81 percent of the total debt.

This debt accounts for more than $10 trillion of the total $13 million owed by consumers in the United States, CNN reports. However, that number has fallen by 5 percent since the beginning of the recession, when it totaled more than $11 trillion.

Despite this, homes have lost a third of their value over this same period, the news source says. The current loan to value ratio for all mortgage holders is 88.4 percent, meaning that if a home is worth $175,000, consumers would need to pay $154,000.

Given consumers are focusing on not taking on more debt, it could be as many as 10 to 15 years before this rate decreases to pre-recession levels, the report says. This means consumers may be paying more for their homes and receiving less in return for years to come.