The New York Fed just put out data on how much debt we all had in Q1 2019. Let’s dig in for the important stuff.
– U.S. total household debt is $13.67 trillion, up $124 billion (0.9%) from Q4 2018
– Mortgage debt at $9.2 trillion, a $120 billion increase from Q4 2018
– Home equity lines of credit balances down $6 billion to $406 billion total
– $344 billion in new mortgage debt in Q1 2019 (only 1% delinquent)
– 11.7% of mortgages in early delinquency (30-60 days late) transitioned to 90+ days delinquent, lowest rate since 2005.
– Student loan debt at $1.49 trillion, up $29 billion from Q4 2018 (less than 11% of total debt)
– BUT 10% of student debt is 90+ days late on payment or in default
Check out the big picture below. Remember this composition when someone tries to ring the alarm about debt as a systemic risk—most debt is mortgages, and the mortgage debt market is healthy. More on this to come.