US Quarterly Household Credit Update

🏦 Latest quarterly Fed report:

US household debt up $333 billion in Q4 ‘21.

The total debt reached $15.58 trillion.

Over $1 trillion increase or +7% in 2021.

Increase $258 billion Q/Q, +8.8% Y/Y.

New mortgages driven by rising home prices,

Which was up 17% Y/Y in 2021.

Increase $15 billion Q/Q, +6.1% Y/Y.

New origination shows a higher loan amount,

A result of high car prices with the supply chain issue.

Increase $52 billion Q/Q, +4.5% Y/Y.

The balance slowly climbed back up in ‘21,

between rebounded spending and high savings.

Down $8 billion Q/Q, +1.3% Y/Y

With a strong labor market and high tuition,

US college enrollments are down nearly 1 million or -5.1% vs. 2019.

The underwriting is still pretty robust, for example,

67% of new mortgage originations from credit scores 760+.

For all the major credit products,

The late-stage delinquency and charge-off rates remained low,

Although they are expected to slowly normalize.

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