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U.S. consumers debt increased by 1.7%, in the first quarter, marking a new record.
The total consumer debt came to $15.84 trillion, a gain of over $266 billion during the first quarter, the Federal Reserve Bank of New York said in its quarterly report on Household Debt and Credit, released Tuesday.
The debt in the fourth quarter had risen by $333 billion to $15.58 trillion, which was the most significant rise since 2007.
Total household credit rose due to a $250 billion increase in mortgage debt, which now stands at $11.18 trillion. This is an increase of 10% from the first quarter in 2021.
Debt balances
Auto loan balances also increased by $11 billion.
Credit card balances declined by $15 billion, a typical seasonal change, but remained 9% higher than last year’s levels. Credit card balances had declined significantly in the first year of the pandemic and remain $86 billion lower than at the end of 2019.
Student loan debt climbed by $14 billion in the first quarter, bringing the annual increase to 6.5%. Student loan balances now stand at $1.59 trillion.
A large chunk of the debt came from mortgages that make up 71% of all household debt, a number that has consistently risen.
New mortgages, or mortgage originations, totaled $859 billion for the quarter, down, but still above pre-pandemic levels
The New York Fed added, though, that it appears the refinance boom that coincided with falling mortgage rates, is waning as rates are rising.
Source: New York Federal Reserve
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