The State of Debt in America: Q3 Report

The Federal Reserve Bank of New York’s Center for Microeconomic Data recently issued its Quarterly Report on Household Debt and Credit.

Through the third quarter of 2018, total household debt increased by $219 billion (1.6%) to $13.51 trillion. It was the 17^th consecutive quarter with an increase, and the total is now $837 billion higher than the previous peak of $12.68 trillion, from the third quarter of 2008. Overall household debt is now 21.2% above the post-financial crisis trough reached during the second quarter of 2013.

Here are the key takeaways of the first quarter report, by segment:

HOUSING DEBT

Mortgage originations increased to $445 billion from $437 billion in the second quarter
Mortgage delinquencies were roughly flat, with 1.1% of mortgage balances 90 or more days delinquent in the third quarter

NON-HOUSING DEBT

Outstanding student loan debt increased by $37 billion, reaching $1.44 trillion on September 30.
Auto loan balances continued their six-year upward trend, increasing by $27 billion in the quarter, to $1.44 trillion
Credit card balances rose by $15 billion to $844 billion.

DELINQUENCIES, BANKRUPTCIES AND CREDIT INQUIRIES

Mortgage delinquency transition rates increased slightly with about 1.2% of current balances transitioning into delinquency.
The number of credit inquiries within the past six months-an indicator of consumer credit demand-increased slightly, but remains among the lowest seen in the history of the data.