Total household debt increased by $109 billion in during the second quarter to $17.80 trillion, a 0.6% uptick, according to new data from the Federal Reserve Bank of New York.
Regarding housing debt, the new data report found mortgage balances up by $77 billion from the previous quarter and reached $12.52 trillion at the end of June. Home equity line of credit (HELOC) balances increased by $4 billion to $380 billion – this marked the ninth consecutive quarterly increase and was a $63 billion increase from the series low reached in third quarter of 2021.
Mortgage originations continued increasing at about the same pace seen in the previous four quarters and stood at $374 billion. Limits on HELOC increased by $3 billion, the ninth consecutive quarterly increase.
Early delinquency transition rates for mortgages increased by 0.1 percentage point, although they were still low by historic standards.
“The volume of mortgage originations remained low, primarily due to subdued refinancing activity.” said Andrew Haughwout, director of household and public policy research at the New York Fed. “Homeowners continued to increase HELOC balances as an alternative way to extract home equity.”
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