US Household Debt Q2 Update
Updated: Sep 23, 2022
Q2 saw the steepest interest rate hike.
How is the US household credit doing?
Here is the latest quarterly report from the Fed: 👇
US household debt up $312 billion in Q2 ‘22.
The total debt reached $16.15 trillion.
$1.2 trillion increase or +8.0% over Q2 ‘21.
Up $207 billion Q/Q, +9.0% Y/Y.
With the interest rate rising fast,
Origination volume slows down,
The median housing price is still up 13.4% Y/Y.
🚗 Auto loan
Up $33 billion Q/Q, +6.2% Y/Y.
Strong origination stays at peak level.
It’s mainly driven by high car price,
As the supply chain issue continues.
💳 Credit card
Up $46 billion Q/Q, 100 billion Y/Y.
That is a strong +13% Y/Y rebound.
With high inflation and cash in the bank,
Consumers actively pull out their cards.
👩🎓 Student loan
Flat Q/Q, +1.2% Y/Y.
The total is $1.59 trillion.
🟩 Credit Quality
For all the major credit products, the late-stage delinquency rates remained low.
The underwriting continues to be robust: 65% of new mortgages originated from credit scores of 760+.
However, risk metrics are on the way to normalizing (increase).
💠 The flow rates to both 30+ and 90+ days delinquency began to go up.
💠 35,000 individuals had foreclosures in the quarter vs. 24,000 in Q1 ‘22 and 9,000 in Q4 ‘21.
Source: HOUSEHOLD DEBT AND CREDIT REPORT (Q2 2022) 🔹If you enjoy this post, consider receiving content like this in your inbox.