NEW YORK—Total household debt in the first quarter of 2022 rose by $266 billion (1.7%) to $15.84 trillion, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data’s newly issued Quarterly Report on Household Debt and Credit.
Balances now stand $1.7 trillion higher than at the end of 2019, prior to the pandemic.
The report attributes the steep increase primarily to mortgage and auto balance increases. Mortgage balances rose by $250 billion and stood at $11.18 trillion at the end of March.
However, credit card balances declined by $15 billion, a seasonal trend typically seen at the beginning of the year, NAFCU noted in its analysis.
The data further show auto loan balances increased by $11 billion during the first quarter, while student loan balances increased by $14 billion and now stand at $1.59 trillion. Although mortgage originations were at $859 billion, representing a decline from the high volumes seen during 2021, totals were still $197 billion higher than in the first quarter of 2020, pre-pandemic, according to the report.
Mortgage Refinancings Slow
“The first quarter of 2022 saw an increase in mortgage and auto loan balances coupled with a typical seasonal decrease in credit card balances,” said Andrew Haughwout, director of Household and Public Policy Research at the New York Fed. “However, mortgage originations declined from the historically high volumes seen in 2021, reflecting an unwinding in the demand for refinances.”
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