The Federal Reserve Bank of New York’s Center for Microeconomic Data has released another Quarterly Report on Household Debt and Credit earlier this month. It states that household debt has increased by $35 billion in the second quarter of the year, reaching $12.29 trillion. This 0.3 percent increase was driven by two things: auto loan and credit debt. Both of them experienced increases, by $32 billion and $17 billion respectively.
The report uses data from the New York Fed’s Consumer Credit Panel. The panel is a nationally representative sample drawn from anonymized Equifax credit data. Surprisingly, it shows that mortgage debt decreased by $7 billion in Q2. In the first quarter, mortgage debt experienced a $120 billion rise.
Meanwhile, student loan balances remained flat. Q2 also brought with it improvements in the overall delinquency rates, and another historical low in new foreclosures.
The second quarter also saw extensions of credit for mortgages and auto loans. The two have seen increases of $427 billion and $149 billion respectively. The aggregate credit card limit increased as well, for the 14th consecutive quarter.
Household Debt and Credit Development as of Q2 2016
“Today’s report highlights a positive ongoing trend in household debt,” Donghoon Lee, Research Officer at the New York Fed, said in a press release. “Delinquency rates continue to improve, even as credit has become more widely available.”