U.S. Household Debt Holds Near $18.8T as Delinquencies Stabilize — Evening Brief – 08.11.26
U.S. household debt edged down 0.1% in the second quarter to $18.8 trillion, as a decline in mortgage balances offset increases in credit card, auto loan and home equity borrowing, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit.
The report points to generally stable household credit conditions, but also highlights continued pressure among some borrowers. Overall delinquency rates slipped 0.1 percentage point from the first quarter to 4.7%, though the share of auto and mortgage debt newly entering early delinquency increased.
Mortgage balances, the largest component of household debt, fell by $74 billion during the quarter to $13.1 trillion at the end of June. Mortgage originations totaled $505 billion, maintaining a largely steady pace from the prior quarter.
Home equity lines of credit rose by $13 billion to $459 billion, reflecting continued demand among homeowners to tap accumulated home equity. New York Fed data showed mortgage balances totaled $13.19 trillion at the end of the first quarter, while HELOC balances continued to rise.
Credit card balances increased by $21 billion to $1.26 trillion in the second quarter. Auto loan balances climbed $28 billion to $1.71 trillion, while student loan balances declined by $7 billion to $1.65 trillion.
“Delinquency rates across most products have held steady over the past two years,” Joelle Scally, economic policy adviser at the New York Fed, said. “Still, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we’ll continue to monitor.”
The flow of debt into delinquency is a closely watched measure because it can signal deterioration before it becomes visible in the overall delinquency rate. Early-delinquency transitions rose for auto loans and mortgages, while they were largely unchanged for credit cards and other debt categories.
Auto loan credit performance has been under particular scrutiny. The Federal Reserve has previously noted that auto loan delinquency rates rose above pre-pandemic levels by the end of 2023, driven in part by high vehicle prices and larger monthly payments.