NEW YORK –In its Q1 2014 Household Debt and Credit Report, the Federal Reserve Bank of New York announced that outstanding household debt increased $129 billion from the previous quarter. The increase was led by rises in mortgage debt ($116 billion), student loan debt ($31 billion) and auto loan balances ($12 billion), slightly offset by a $27 billion declines in credit card and HELOC balances. Total household indebtedness stood at $11.65 trillion, 1.1 percent higher than the previous quarter. Overall household debt remains 8.1 percent below the peak of $12.68 trillion reached in Q3 2008. The reportis based ondata from the New York Fed's Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data.
Additionally, an update to a recent blog discussing the impact of student loan debt on housing and auto markets is available on our Liberty Street Economics Blog.
"We've observed household debt increase three quarters in a row and delinquency rates at their lowest levels since 2008," said Andy Haughwout, vice president and economist at the New York Fed. "However, the direction of future mortgage originations will have an important implication on the household financial outlook and we will continue to monitor it."