New York Fed Credit Report Demolishes Myth of Strong Consumer Balance Sheet – Mish Talk

Please consider the New York Fed Household Debt and Credit Report for 2022 Q2. 

• Total household debt rose $312 billion, or 2 percent, in the second quarter of 2022 to reach $16.15 billion, according to the latest Quarterly Report on Household Debt and Credit. 
• Mortgage balances—the largest component of household debt—climbed $207 billion and stood at $11.39 trillion as of June 30. 
• Credit card balances had a $46 billion increase since the first quarter. The 13% year-over-year increase marked the largest in more than 20 years.
• Aggregate limits on cards marked their largest increase in over ten years. 
• Transitions into delinquency ticked up but remained very low compared to historical levels.
• Auto loan balances increased by $33 billion in the second quarter, continuing the upward trajectory that has been in place since 2011. 
• Student loan balances now stand at $1.59 trillion, roughly unchanged from the first quarter of 2022. 
• Other balances, which include retail cards and other consumer loans, increased by a robust $25 billion. 
• In total, non-housing balances grew by $103 billion, a 2.4% increase from the previous quarter, the largest increase seen since 2016.