The quarterly report on household debt and credit released by the Federal Reserve Bank of New York’s Center for Microeconomic Data shows that the total household debt in the third quarter of 2022 has gone up by $351 billion (2.2%) to $16.51 trillion. Balances now stand $2.36 trillion higher than at the end of 2019, before the pandemic recession.
Mortgage balances rose by $282 billion in the third quarter of 2022 and stood at $11.67 trillion at the end of September, representing a $1 trillion increase from the previous year. Credit card balances also increased by $38 billion. The 15% year-over-year increase in credit card balances represents the largest in more than 20 years. Auto loan balances increased by $22 billion in the third quarter, consistent with the upward trajectory seen since 2011. Student loan balances slightly declined and now stand at $1.57 trillion. Aggregate limits on credit card accounts increased by $82 billion and now stand at $4.3 trillion.
The delinquency transition rate for credit cards and auto loans increased by about half a percentage point, similar to increases seen in the second quarter.
Read more-
