Just Released: New York Fed Press Briefing Highlights Changes in Home Equity and How It’s Used
The Quarterly Report for the first quarter of 2018 shows a continued increase in debt balances, which rose $63 billion during the quarter, driven by increased mortgage balances (+$57 billion). Other debt balances were mixed: auto and student debt rose, while credit card and home equity lines of credit (HELOC) obligations fell. As of March 31, 2018, total household indebtedness was $13.2 trillion, $536 billion higher than the previous peak in the third quarter of 2008 and 18.5 percent above the trough in the second quarter of 2013. Although household debt has been growing for five years, its growth has been slow relative to earlier periods, as mortgage debt has continued to be relatively flat. In the first quarter, aggregate delinquency rates improved, as rates on mortgage and HELOC debt declined further, while delinquency on auto and credit card debt increased.
Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw