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Increased while mortgage originations case



Bloomberg

The numbers: Household debt rose for the 1

8th straight period in the fourth quarter, edging up 0.2% to $ 13.54 trillion, the New York Fed said Tuesday, even as new mortgage debt fell to the lowest

Household debt is now 21% above the credit crisis.

What happened: Mortgage originations fell to $ 401 billion from $ 445 billion, as last year's rising mortgage rates crushed refi activity and higher prices limited demand for sales of older and new homes. Balances on home equity loans fell to the lowest level in 14 years.

But last year, car loans originated $ 584 billion, the best year in 19, as the growing jobs market encouraged demand for new vehicles.

Student debt, now $ 1.46 trillion, for both the quarter and the year, as credit card debt.

The big picture: The New York Fed report highlighted that the new auto loans were mostly to creditworthy individuals, with the overall auto loan stock at the highest quality since the regional central bank started keeping track in 2000. [19659003] But the flows of auto loans in serious delinquency kept rising due to past subprime origination, now reaching 2.4%, the highest level since the third quarter of 2017. These subprime loans have been and have been made by auto finance companies as opposed to banks or car manufacturers.

According to the New York Fed, 6.5% of auto finance loans are 90+ days past due, compared to just 0.7% of those made by credit loans.
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