“Household debt balances are growing at a moderate pace, with delinquency rates stabilizing,” Donghoon Lee, economic research advisor at the New York Fed, said.
“The relatively low mortgage delinquency rates reflect the housing market’s resilience, driven by ample home equity and tight underwriting standards,” Lee said.
Credit card balances also hit a new high, climbing $24 billion to $1.23 trillion, while auto loan balances held steady at $1.66 trillion. Home equity line of credit (HELOC) balances increased by $11 billion to $422 billion, and student loan balances rose $15 billion to $1.65 trillion. Non-housing balances overall grew by 1% from the previous quarter.
Delinquency rates remained elevated but largely stable, with 4.5% of outstanding debt in some stage of delinquency—levels not seen since early 2020, but still well below the 11% peak during the 2009 financial crisis.
Notably, transitions into serious delinquency (90 days or more past due) increased for most debt types, but mortgages saw a slight decrease, underscoring the sector’s relative strength.