Key Facts
• On August 5, the New York Fed released its Q2 Household Debt and Credit Report.
• U.S. household debt rose 1% from the previous quarter, reaching $18.39 trillion.
• Total debt increased by $185 billion, with housing-related debt up $131 billion to $12.94 trillion.
• 4.4% of total debt transitioned into delinquency, maintaining a “high level.”
• Student loan delinquencies surged significantly after repayment deferrals ended.
• 10.2% of student loans are over 90 days delinquent, with a total balance of $1.64 trillion.
• FHA mortgage delinquencies rose sharply, with over 4% transitioning into 30+ day delinquencies.
• Credit card debt increased by $27 billion to $1.21 trillion, while auto loans rose by $13 billion to $1.66 trillion.
• Southern U.S. and Puerto Rico saw higher FHA mortgage delinquency rates.
• Researchers noted current delinquency rates may reflect a rebound from artificially low pandemic levels.
Summary
The New York Fed’s Q2 report highlights a 1% rise in U.S. household debt, totaling $18.39 trillion. Housing-related debt saw a $131 billion increase, while student loan delinquencies surged after repayment deferrals ended, with 10.2% of loans over 90 days delinquent. FHA mortgage delinquencies also rose, particularly in the South and Puerto Rico. Credit card and auto loan debts increased by $27 billion and $13 billion, respectively. Researchers suggest current delinquency rates may reflect a rebound from pandemic-era lows. The report underscores the potential economic impact of rising student loan issues and housing market pressures.
