Home Topics in Depth Economics U.S. Households Ramp Up Borrowing Led by Mortgages, Credit Cards

  • Purveyor (2611 posts)
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    U.S. Households Ramp Up Borrowing Led by Mortgages, Credit Cards

    *Mortgage origination volumes rise to highest since Q3 2007
    *Student loan and auto loan debt balances hit new record highs

    by Matthew Boesler
    February 16, 2017, 11:00 AM ESTFebruary 16, 2017, 11:13 AM EST

    U.S. households increased their borrowing in the final three months of 2016 at the fastest pace in three years, according to the Federal Reserve Bank of New York.

    Consumer debt rose by $226 billion, or 1.8 percent, in the fourth quarter, led by a $130 billion increase in mortgage loan balances and a $32 billion increase in credit-card borrowings, the New York Fed said Thursday. The rise brought total consumer debt to $12.58 trillion, just shy of the $12.68 trillion peak in the third quarter of 2008.

    New mortgages originated totaled $617 billion, marking the biggest three months for volumes since the third quarter of 2007.
    “Debt held by Americans is approaching its previous peak, yet its composition today is vastly different as the growth in balances has been driven by non-housing debt,” Wilbert van der Klaauw, a senior vice president at the New York Fed, said in a press release.




    Mom Cat, westerebus, N2Doc and 1 otherPunxsutawney like this

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  • Punxsutawney (656 posts)
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    1. The next bubble

    Well on its way.  Lambs to the slaughter?

    This though to me is downright criminal.  “Student loan balances rose to a new record high of $1.31 trillion,”


    To neoliberals, everyone and everything are disposable. -  Chris Hedges
  • Art from Ark (1729 posts)
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    2. Racking up debt

    is like having a load of bricks on one’s shoulders.

    • Mom Cat (6041 posts)
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      3. Live as frugally as you possibly can and pay off the vultures as fast as you

      possibly can.

           NEVER FORGET      BERNIE WON!          
      • Art from Ark (1729 posts)
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        4. I've been through that, and it wasn't fun

        So now I try to find the best deal I can on everything. For example, I have to go to different towns during the week, so I check local stores to see what they have that is cheaper than at other stores. One green grocer gives me deals on fresh produce, so I buy most of my produce there. Store B sells tofu and bread ridiculously cheap, and occasionally has special prices on other things. Store C sells Italian pasta and canned tomatoes cheap. Stores D and E are drug stores that give me points, both for outright purchases and for using their credit card, and one always gives me an all-purpose coupon that I can use to get a 15% discount on all health-related items. Store F marks box lunches and deli items down to half price a couple of hours before closing time. And so on.

        • Mom Cat (6041 posts)
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          5. Good shopper! That sure helps save money.

               NEVER FORGET      BERNIE WON!