U.S. Household Debt Rises to $18.8T as Mortgage, Auto Balances Climb — Evening Brief – 05.12.26
U.S. household debt edged higher in the first quarter, with modest increases across most major categories offset in part by a seasonal pullback in credit card balances, even as signs mount that student loan delinquencies are normalizing at higher post‑pause levels.
Total household debt increased by $18 billion, or 0.1%, in Q1 2026, bringing the aggregate balance to $18.8 trillion, according to the Federal Reserve Bank of New York’s latest household debt and credit report. Mortgage balances rose by $21 billion to $13.19 trillion, while home equity lines of credit climbed $12 billion to $446 billion, now $129 billion above their Q1 2022 trough.
“Aggregate household debt levels rose slightly, with modest increases in most debt types offsetting a seasonal decline in credit card balances,” said Daniel Mangrum, research economist at the New York Fed. “Delinquency transition rates were mostly steady, while student loan delinquencies are returning to pre-pandemic levels.”
Credit card balances declined by $25 billion to $1.25 trillion, reflecting typical first‑quarter seasonality. Auto loan balances increased by $18 billion to $1.69 trillion, while student loan balances were essentially flat, slipping $6 billion to $1.66 trillion.
Origination activity remained solid. Households took out $530 billion in new mortgages in Q1, and $182 billion in new auto loans appeared on credit reports. Aggregate credit card limits rose by $60 billion, and HELOC limits increased by $14 billion, or 1.4%, extending an expansion trend that began in 2022.
Overall credit performance held up, with 4.8% of outstanding debt in some stage of delinquency. Early delinquency transitions were steady for auto loans but ticked down slightly for credit cards (from 8.7% to 8.6%) and mortgages (from 3.9% to 3.8%). Serious delinquencies were mostly unchanged for auto loans and credit cards but rose modestly for mortgages from 1.4% to 1.5%.
Student loans showed a more complex picture. The transition rate into serious delinquency declined from 16.2% in Q4 2025 to 10.9% in Q1, yet the overall student loan delinquency rate rose to 10.3% of balances 90+ days past due, up from 9.6%. Roughly 2.6 million borrowers were more than 120 days delinquent.