With the banking crisis in March,
How is US consumer credit doing?
Here is the Q1 ‘23 Fed report: 👇
Quarterly debt growth slowed to $148B.
The total debt reached $17.05 trillion.
$1.21 trillion increase or +7.6% vs. Q1 ‘22.
🏡 Mortgage
Up $121 billion Q/Q, +7.7% Y/Y.
With the interest rate rising fast,
Origination $ continued to slide.
🚗 Auto Loan
Up $10 billion Q/Q, +6.3% Y/Y.
Origination $ began to dip in Q1.
New car prices still slowly rising.
Used car prices paused the drop.
💳 Credit Card
Flat Q/Q, +145 billion Y/Y.
Y/Y growth runs even higher at 17%.
With high prices and a decent job market,
The card balance sits right below $1 trillion.
👩🎓 Student Loan
Up $9 billion Q/Q, +0.9% Y/Y.
The total balance is $1.60 trillion.
With the pandemic officially over,
Payment will resume by late August.
🟨 Risk Normalization
The risk normalization (increase) continues - slowly but surely.
📌 The flow rates to 90+ days delinquencies are approaching to pre-pandemic level for Auto Loan and Credit Card.
📌 35,000 individuals had Mortgage Foreclosures in Q1 vs. 34,000 in Q4, and 28,500 in Q3.
📌 New Bankruptcies up slightly at 102,000 - first time above 100K since Q2 2021.
Source: The Fed, Quarterly Report on Household Debt and Credit
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