Total U.S. household debt increased by $185 billion, or 1%, to $18.39 trillion in the second quarter of 2025, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, released today.
Mortgage balances grew by $131 billion and totaled $12.94 trillion at the end of June, according to the report. Auto loan balances also increased, rising by $13 billion to reach $1.66 trillion. The pace of mortgage originations increased slightly, with $458 billion in newly originated mortgages in the second quarter. HELOC balances rose by $9 billion to $411 billion, representing the 13th consecutive quarterly increase.
Student loan balances edged up by $7 billion and stood at $1.64 trillion, with student loans seeing another uptick in the rate at which balances moved from current to delinquent due to the resumption of reporting of delinquent student loans. Aggregate delinquency rates remained elevated in the second quarter, with 4.4% of outstanding debt in some stage of delinquency.
“This quarter’s flow of household debt into serious delinquency was mixed across debt types, with credit card and auto loans holding steady, student loans continuing to rise, and mortgages edging up slightly,” said Joelle Scally, economic policy adviser at the New York Fed. “Despite the recent uptick in mortgage delinquency, overall mortgage performance remains strong by historical standards.”
