by Calculated Threat on 8/13/2019 11:09:00 AM

From the NY Fed: Whole Family Debt Climbs for 20th Straight Quarter as Mortgage Debt and Originations Rise

The Federal Reserve Financial institution of New York’s Middle for Microeconomic Knowledge right now issued its Quarterly Report on Family Debt and Credit score, which reveals that complete family debt elevated by $192 billion (1.4%) to $13.86 trillion within the second quarter of 2019. It was the 20th consecutive quarter with a rise, and the entire is now $1.2 trillion increased, in nominal phrases, than the earlier peak of $12.68 trillion within the third quarter of 2008.

Mortgage balances—the biggest element of family debt—rose by $162 billion within the second quarter to $9.Four trillion, surpassing the excessive of $9.Three trillion within the third quarter of 2008. Mortgage originations, which embrace mortgage refinances, additionally elevated by $130 billion to $474 billion, the best quantity seen for the reason that third quarter of 2017.

“Whereas nominal mortgage balances are actually barely above the earlier peak seen within the third quarter of 2008, mortgage delinquencies and the common credit score profile of mortgage debtors have continued to enhance,” stated Wilbert van der Klaauw, senior vice chairman on the New York Fed. “The info counsel a extra nuanced image for different types of family debt, with bank card delinquency charges persevering with to rise.”
emphasis added

Click on on graph for bigger picture.

Listed below are two graphs from the report:

The primary graph reveals combination shopper debt elevated in Q2.  Family debt beforehand peaked in 2008, and bottomed in Q2 2013.

From the NY Fed:

Combination family debt balances elevated by $192 billion within the second quarter of 2019, a 1.4% enhance, and now stand at 13.86 trillion. Balances have been steadily rising for 5 years and in combination are actually $1.2 trillion increased, in nominal phrases, than the earlier peak (2008Q3) peak of $12.68 trillion. General family debt is now 24.3% above the 2013Q2 trough.

Mortgage balances proven on shopper credit score reviews on June 30 stood at $9.Four trillion, a $162 billion enhance from 2019Q1. Balances on house fairness traces of credit score (HELOC) continued the declining development in place since 2009, with a decline of $7 billion, and now stand at $399 billion. Non-housing balances elevated by $37 billion within the second quarter, with a $17 billion enhance in auto mortgage balances and a $20 billion enhance in bank card balances offsetting an $Eight billion decline in scholar mortgage balances.

Delinquency Status The second graph reveals the % of debt in delinquency.

The general delinquency price decreased in Q2.  From the NY Fed:

Combination delinquency charges improved within the second quarter of 2019. As of June 30, 4.4% of excellent debt was in some stage of delinquency. Of the $604 billion of debt that’s delinquent, $405 billion is severely delinquent (a minimum of 90 days late or “severely derogatory”, which incorporates some money owed which have beforehand been charged off though the lenders are persevering with assortment makes an attempt). The share of bank card balances transitioning into 90+ day delinquency has been rising since 2017, and continued to take action in Q2. In the meantime the stream into 90+ day delinquency for auto mortgage balances has risen greater than 70 bps since 2012 and skilled a slight seasonal decline this quarter. Pupil mortgage delinquency transition charges stay at excessive ranges relative to different sorts of debt, and elevated this quarter; 9.9% of scholar mortgage balances grew to become severely delinquent within the second quarter (at an annual price).

There may be far more within the report.