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  • Frank Tian

Q1 Credit Update

In the eventful Q1 2022,

How is the US household credit doing?


Here is the latest quarterly report from the Fed:

US household debt up $266 billion in Q1 ‘22.

The total debt reached $15.84 trillion.

$1.2 trillion increase or +8.2% over Q1 ‘21.


🏡 Mortgage

Increase $250 billion Q/Q, +10.0% Y/Y.

With the rate increase cycle began,

Origination volume is down from the 2021 peak.

The average housing price is still up 15% Y/Y.


🚗 Auto loan

Increase $11 billion Q/Q, +6.3% Y/Y.

New origination is driven by high loan amounts.

As the supply chain issue continues,

Car prices are expected to stay high.


💳 Credit card

A seasonal decrease of $15 billion Q/Q.

A substantial increase of $71 billion or + 9.2% Y/Y.

With dwindling savings and high inflation,

Consumers pulled out their credit cards again.


👩‍🎓 Student loan

Up $14 billion Q/Q, +0.4% Y/Y

The loan payment pause has now been extended to September.

However, 5 million are at risk once the payment resumes.


The underwriting continues to be robust, for example,

68% of new mortgage originations from credit scores 760+.


For all the major credit products,

The late-stage delinquency and charge-off rates remained low,

Although they are on the course to slowly normalize (increase).


24,000 individuals had foreclosure notations added to credit reports this quarter.

Compared with only 9,000 individuals in Q4 ‘21.


New York Fed press release: Total Household Debt Increases in Q1 2022


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