Auto loans hit record high and some other consumer debt rising, New York Fed says

Though overall consumer debt fell slightly to **$18.8 trillion** in the April-June period, the decline was linked to a change in how mortgage data is reported, with a decline in mortgage debt in the second quarter expected to be offset by a similar jump in the next report. The overall delinquency rate fell in the second quarter in a sign that household balance sheets on average remain resilient despite a decline in inflation-adjusted incomes. Overall delinquency on all forms of credit fell slightly in the quarter, to **4.7%** of outstanding balances versus **4.8%** in the prior quarter. The New York Fed report adds more detail to what has been a puzzle for U.S. central bank policymakers and economists who have wondered when the fact that prices are rising faster than incomes will translate into more obvious signs of stress — either a blow to consumption or an outsized rise in debt and delinquency. Personal consumption spending jumped **3.2%** in the second quarter, a fast rebound from tepid first quarter growth that helped keep overall economic growth from slowing even further than it did, to a **1.5%** annual pace from **2.1%** in the prior quarter. In a new Bank of America Institute analysis of July data, credit card spending excluding gas was found to have risen "a solid **4.3%**," even as the temporary boost from things like the FIFA World Cup started to fade. There was even evidence of "convergence" of spending rates across income groups and a lessening of the economy's "K-shaped" dynamics. "Consumer financial health looks solid. Despite cost-of-living pressures from areas such as gasoline, the share of households paying off their credit card bills in full each month has risen. And there is little sign of an acceleration in households drawing upon their savings," a recent analysis by the institute concluded. In a blog post accompanying the New York Fed's report, staff economists said credit card delinquency rates in particular, while still elevated compared to the period before the pandemic, appear to have stabilized. An increase in the share of credit card debt more than 90 days past due, from **7.6%** in late 2022 to **12.8%** at the start of this year, prompted concerns about deteriorating household finances. But a closer look at the data, the researchers said, shows the pace at which households were falling behind has been unchanged for around two years. The rise in the overall share of delinquent credit card debt, they found, was because lenders were keeping "stale, charged-off debts" on their books for longer, rather than because of "a fundamental worsening in the incidence of delinquency." "When the question is 'how are households doing right now?'... the pace of credit card delinquency is elevated but has been largely stable since 2024," with about **7%** of balances flowing into delinquency from one quarter to the next, the researchers concluded. U.S. consumers took out a record amount in auto loans in the second quarter and boosted their credit card and home equity balances as well, the New York Fed said in its latest household debt and credit report on Tuesday. Auto loan originations hit a nominal record **$211 billion** in the second quarter. The **$19 billion** rise in home equity loans is part of a now four-year trend that Fed researchers see as part of a substitution among older homeowners who want to avoid the current high mortgage rates that would be associated with a full refinancing.

Auto loans hit record high and some other consumer debt rising, New York Fed says

Overall debt and delinquencies

Consumer spending remains solid

Credit card delinquency trends appear to stabilize

Record auto loan originations and higher home equity balances

Related News

Liberty Global-backed Formula E taps Disney+ as global streaming home from 2026/27 season

AsiaFIN returns to profit in Q2 FY26, net income USD 430,779

CSPi to report fiscal Q3 results, host conference call

Simon Property Group announces R$ 1.94 per unit distribution for BDR BRSIMNBDR002

Varex Imaging showcases TrueSpectrum at Suzhou NDT Innovation Conference, X-ray CT Symposium