The Federal Reserve Bank of New York’s Microeconomic Data Center released the results of its Quarterly Report on Household Debt and Credit, revealing that total household debt in the second quarter of 2022, increased by $312,000 million (2%) to $ 16.15 billions of dollars.
Data from the New York Federal Reserve’s nationally representative Consumer Credit Panel indicate that balances are now $2 trillion higher than at the end of 2019, before the Covid pandemic-19.
According to the information, mortgage balances increased $207, million in the second quarter of 2022 and stood at $11.39 billion at the end of June io.
Credit card balances also increased in $59,000 million, although seasonal patterns typically include an increase in the second quarter, the cumulative increase of 13% on credit card balances since the second quarter of 2021 represents the greater of more than 20 years.
Car loan balances increased by $33,11 million solid in the second quarter, while student loan balances were virtually unchanged from the first quarter at $1.59 billion.
Other balances, which include retail cards and other consumer loans, increased by $25,000 millions. In total, non-housing balances increased by $103,000 million, the largest increase seen since 2016.
Mortgage approvals decreased slightly in the second quarter and stood at $312,000 millions. New car loan volume increased to $199,000 million, continuing the high volumes seen in dollar terms since the third quarter of 2020. Added limits on credit card accounts increased $100,000 million and now they are located at $4.22 billion, the largest increase in more than ten years.
“The second quarter of 2022 showed solid increases in mortgage balances , auto loans and credit cards, fueled in part by rising prices,” said Joelle Scally, manager of the New York Federal Reserve Microeconomic Data Center. “While household balance sheets appear to be in a strong position, we are seeing increased delinquencies among low-income and high-risk borrowers with rates approaching pre-pandemic levels.”
The proportion of current debt in transition to delinquency increased modestly for all types of debt, but remains historically very low. The delinquency transition rate for credit cards, car loans and other debt increased by 0.5 percentage points, and home equity lines of credit increased by 0.7 percentage points.
For more details of the report enter here.
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