The Federal Reserve Bank of New York’s Center for Microeconomic Data released its Quarterly Report on Household Debt and Credit, revealing a $109 billion (0.6%) increase in total household debt in Q2 2024, reaching $17.80 trillion. The report utilizes data from the New York Fed’s nationally representative Consumer Credit Panel.
Additionally, the New York Fed published a Liberty Street Economics blog post analyzing rising home equity lines of credit (HELOC) balances. Andrew Haughwout, Director of Household and Public Policy Research at the New York Fed, noted that "the volume of mortgage originations remained low, primarily due to subdued refinancing activity," and highlighted an increase in HELOC balances as homeowners sought alternative methods to access home equity.
Mortgage balances rose by $77 billion to $12.52 trillion by the end of June. HELOC balances saw a $4 billion rise, marking the ninth consecutive quarterly increase since Q1 2022, reaching $380 billion—a $63 billion rise from the series low in Q3 2021. Credit card balances increased by $27 billion to $1.14 trillion, while auto loan balances grew by $10 billion to $1.63 trillion. Other consumer loans remained relatively flat with a $1 billion increase.
Mortgage originations maintained a steady pace over the last four quarters at $374 billion. Aggregate credit card account limits modestly increased by $69 billion (1.4%), while HELOC limits rose by $3 billion for the ninth consecutive quarter.
Overall delinquency rates remained stable at 3.2% of outstanding debt in some stage of delinquency. Delinquency transition rates for credit cards, auto loans, and mortgages saw slight increases over the past year, with approximately 9.1% of credit card balances and 8% of auto loan balances transitioning into delinquency. Early mortgage delinquency transition rates increased by 0.1 percentage point but stayed low compared to historical standards.
About 136,000 consumers had bankruptcy notations added to their credit reports in Q2 2024, aligning with pre-pandemic seasonal trends.
The Federal Reserve Bank of New York's Household Debt and Credit Report offers insights into U.S. consumer credit conditions based on data from its Consumer Credit Panel—a sample drawn from anonymized Equifax credit data—providing quarterly updates on borrowing trends across various categories including mortgages, student loans, credit cards, auto loans, and delinquencies.
For further information or inquiries:
Connor Munsch
(347) 224-1175
Connor.Munsch@ny.frb.org
