Overview
- U.S. household debt set a new peak at $18.8 trillion in the first quarter, the New York Fed said Tuesday, with mortgages and auto loans driving the increase.
- Credit card balances slipped by $25 billion to $1.25 trillion in a typical post‑holiday dip, yet they remain about 6% higher than a year ago.
- Researchers described a K‑shaped pattern in consumer finances, noting that lower‑income and younger households face more strain and often use cards for necessities.
- Overall delinquency transitions held mostly steady, but student‑loan past‑due balances climbed above 10% and auto‑loan stress hit multi‑decade highs in some measures.
- Mortgage risk looks localized as HELOC balances kept rising and servicers flagged recent loans in markets like Texas and Florida for potential trouble if price softening and low equity persist.