Total household debt hit a new record of $14.1 trillion last quarter, the Federal Reserve Bank of New York reported Tuesday.
That figure surpasses the last record peak of $12.68 trillion in 2008. The figure nearly rivals the $17.2 trillion of federal debt held by the public.
Household debt has increased for 22 consecutive quarters.
Mortgage originations rose by $224 billion, or 42%, in the fourth quarter of 2019 to reach $752 billion, the highest volume seen since the fourth quarter of 2005. Mortgage balances, the largest component of household debt, rose by $120 billion in the fourth quarter to $9.56 trillion. Roughly 1% of current mortgage balances were delinquent by 30 days or more, which is near the historic low.
Non-housing debt balances rose by $79 billion in the fourth quarter, with increases seen across a variety of debt types, including $16 billion in auto loans, $46 billion in credit card balances, and $10 billion in student loans, according to the New York Fed.
“Mortgage originations, including refinances, increased significantly in the final quarter of 2019, with auto loan originations also remaining at the brisk pace seen throughout the year,” Wilbert Van Der Klaauw, senior vice president at the New York Fed, said in prepared remarks. “The data also show that transitions into delinquency among credit card borrowers have steadily risen since 2016, notably among younger borrowers.”
Student debt increased by $10 billion between the third and fourth quarters of 2019 to total $1.15 trillion. More than 1 out of 10 students were 90 days delinquent in paying their student loans or were in default at the end of 2019.
