Outstanding household debt increased by 0.7% in the third quarter of 2019, rising by $92 billion to land at $13.95 trillion, the Federal Reserve Bank of New York reported today. The increase marks the 21st consecutive quarter of debt growth.
Mortgage balances, the largest component of household debt, rose by $31 billion in the third quarter, landing at $9.44 trillion. The median credit score for new borrowers rose for both mortgages and auto loans in the third quarter. Home equity lines of credit continued to decline, falling by $3 billion during the quarter. Among non-mortgage debt categories, credit card balances rose by $13 billion, auto loans rose by $18 billion and student loans rose by $20 billion.
Overall delinquency rates worsened during the third quarter, with 4.8% of outstanding debt in some stage of delinquency. Mortgage delinquencies held steady, with 1% of mortgage balances 90 days or more delinquent. For auto loans and credit card debt, the flow into serious delinquency held relatively steady. Student loan delinquency transition rates continue to remain high relative to other types of debt.
