Mortgage Originations Declined - Lowest Level Seen Since 3Q2014

from the New York Fed

The Federal Reserve Bank of New York's Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit, which shows that total household debt increased by $124 billion (0.9%) to $13.67 trillion in the first quarter of 2019. It was the 19th consecutive quarter with an increase, and the total is now $993 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008.

The Report is based on data from the New York Fed's Consumer Credit Panel, a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data.

"The rate at which credit card balances become delinquent has been rising, and that has coincided with an increase in younger borrowers entering the credit card market," said Andrew Haughwout, senior vice president at the New York Fed. "However, these delinquency rates are increasing from historically low levels and remain below pre-financial-crisis levels."

The report includes a one-page summary of key takeaways and their supporting data points. Overarching trends from the Report's summary include:

Housing Debt

  • Mortgage balances rose by $120 billion, to $9.2 trillion.
  • Mortgage originations declined to $344 billion from $401 billion, the lowest level seen since the third quarter of 2014.
  • Mortgage delinquencies improved slightly, with 1.0% of mortgage balances 90 or more days delinquent, down from 1.1% in the fourth quarter of 2018.

Non-Housing Debt

  • Outstanding student loan debt increased by $29 billion, to $1.49 trillion.
  • Newly originated auto loans totaled $139 billion, continuing a long-running growth trend.
  • Credit card balances fell slightly, to $848 billion from $870 billion.

Bankruptcy Notations and Credit Inquiries

  • About 192,000 consumers had a bankruptcy notation added to their credit reports, on par with the total from the first quarter of 2018.
  • The number of credit inquiries within the past six months—an indicator of consumer credit demand—declined to around 137 million, the lowest level seen in the history of the data.
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