Solving the Post-Close Challenge with Intelligent Automation

Join our upcoming webinar as SoftWorks AI CEO and Avanze CEO explore the advances in tech that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

The 100-years-war over real estate commissions

HousingWire plunges down the rabbit hole of residential real estate commissions, uncovering the past, present and future of this wholly unique part of the economy.

How borrower education can make housing more attainable

The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs.

MortgagePolitics & Money

Americans are way more in debt now than they were after the financial crisis

Auto loans push household debt 21% above post-crisis levels

American household debt continues to climb to record levels, reaching $13.54 trillion in the fourth quarter of 2018.

According to the latest report from the Federal Reserve Bank of New York’s Center for Microeconomic Data, household debt is now $869 billion higher than 2008’s $12.68 trillion peak.

It is also 21.4% above the debt levels seen in the wake of the financial crisis in 2013.

A large portion of this collective debt is a result of auto loans, which have been climbing steadily since 2011, increasing $9 billion in Q4.

Last year saw the highest level of auto loan debt in the 19 years that this data has been collected, with $584 billion in new auto loans and leases appearing on credit reports.

But a slowdown in mortgage originations has tempered debt growth in Q4, the New York Fed said.

Mortgage originations declined from $445 billion to $401 billion, reaching their lowest level in nearly four years. Mortgage balances totaled $9.1 trillion, mostly unchanged from the previous quarter.

Delinquencies were also flat, with 1.1% of mortgage balances late by 90 days or more.

HELOC balances also declined, falling $10 billion in Q4 to $412 billion – the lowest level in 14 years.

While mortgage debt declined, credit card and student debt rose. Outstanding student loan debt climbed to $1.46 trillion from $1.44 trillion, while credit card balances increased $26 billion to $870 billion, consistent with seasonal patterns.

On a positive note, bankruptcy notations were down in Q4. About 195,000 consumers had a bankruptcy notation added to their credit reports, down 5,000 from the same time last year.

Here is a breakdown of total U.S. household debt:

NY Fed

Most Popular Articles

Fannie and Freddie set dates for their new refi option

Fannie and Freddie revealed new dates for their refi options targeted to low-income borrowers set to be available this summer.

May 05, 2021 By

Latest Articles

What a dismal jobs report means for the housing market

April’s U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they’re not worried about the housing or mortgage market. HW+ Premium Content

May 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please