Q4 '22 Fed Household Credit Report
2022 saw the fastest rate hike.
How is US consumer credit doing?
Here is the latest Fed report: 👇
US household debt up $394 billion in Q4 ‘22.
The total debt reached $16.90 trillion.
$1.32 trillion increase or +8.5% vs. Q4 ‘21.
Up $254 billion Q/Q, +9.1% Y/Y.
With the interest rate rising fast,
Origination $ back to the 2019 level.
Shrinking HELOC trend reversed.
Consumers tapped $14B more in Q4.
🚗 Auto loan
Up $28 billion Q/Q, +6.5% Y/Y.
Origination $ in Q4 is still solid.
New car prices still slowly rise.
Used car prices down 12% from the peak.
💳 Credit card
Up $61 billion Q/Q, +130 billion Y/Y.
Another 15% Y/Y growth quarter after Q3.
With higher prices and strong job market,
The card balance is approaching $1 trillion.
👩🎓 Student loan
Up $21 billion Q/Q, +1.2% Y/Y.
The total balance is $1.60 trillion.
Payment resuming still up in the air,
Pending litigation over loan forgiveness.
🟨 Risk Normalization
The risk normalization (increase) is clear and steady.
📌 The flow rates to 30+ days delinquencies are approaching to pre-pandemic level for Auto Loan and Credit Card.
📌 34,000 individuals had Mortgage Foreclosures in Q4 vs. 28,500 in Q3, and 35,000 in Q2.
📌 New Bankruptcies remain steady - it has been below 100,000 for 5 quarters in a row.
Source: The Fed, Quarterly Report on Household Debt and Credit