2.24.23
The New York Fed’s quarterly report showed a $16.9 trillion increase in household debt, as credit card balances increased by $61 billion in Q4 2022. Credit card debt increased $130 billion since 2021, representing the largest year-over-year increase for credit card debt on record. Mortgage debt decreased and originations fell during the quarter, returning this sector to pre-pandemic levels and indicating the housing market’s response to the Fed’s rate increases.
The same report noted delinquency rates are rising for credit cards, auto loans and mortgages, although still below 2019 levels, with younger borrowers and lower credit score borrowers struggling more with auto loans and credit cards.