The mortgage refinancing boom is winding down and household debt levels are creeping up as consumers edge past the worst of the pandemic’s economic shock, the New York Times reported. Mortgage originations dropped sharply in the first quarter of 2022 compared with their 2021 peak, according to a quarterly report on household debt that the Federal Reserve Bank of New York released Tuesday. Last year’s spike was fueled by refinancings from homeowners chasing exceptionally low rates; as rates have risen, demand has cooled. But the overall amount of mortgage debt for new purchases is generally rising, with soaring home prices forcing buyers to borrow more for their homes.
