top of page
  • Frank Tian

US Quarterly Household Credit Update

🏦 Latest quarterly Fed report:

US household debt up $333 billion in Q4 ‘21.

The total debt reached $15.58 trillion.

Over $1 trillion increase or +7% in 2021.


🏡 Mortgage

Increase $258 billion Q/Q, +8.8% Y/Y.

New mortgages driven by rising home prices,

Which was up 17% Y/Y in 2021.


🚗 Auto loan

Increase $15 billion Q/Q, +6.1% Y/Y.

New origination shows a higher loan amount,

A result of high car prices with the supply chain issue.


💳 Credit card

Increase $52 billion Q/Q, +4.5% Y/Y.

The balance slowly climbed back up in ‘21,

between rebounded spending and high savings.


👩‍🎓 Student loan

Down $8 billion Q/Q, +1.3% Y/Y

With a strong labor market and high tuition,

US college enrollments are down nearly 1 million or -5.1% vs. 2019.


The underwriting is still pretty robust, for example,

67% 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 expected to slowly normalize.


*Consumer credit book, courses, newsletter: www.franktian.net

Recent Posts

See All

Auto Loan Update

🚗 How is the auto loan doing in 2023 so far? Everything is up. 🟦 Auto Price Up The new car price index continues to climb in May, +4.7% Y/Y. It has grown 21% since Feb 2020. Many models become luxu

Old Bank/Card Model Still On Fire

The Economist recently published a piece to highlight the resilience of credit cards in developed economies. In the US, the credit card balance dropped as much as 16% during the pandemic*, but has mad

Comments


bottom of page