According to one report, American households recorded a total debt of $17.1 trillion in the third quarter of this year. New Household Debt Report from WalletHub.
WalletHub researchers, citing inflation-adjusted data released this month by the New York Fed, looked at consumers’ overall debt and financial health and how they compare to the past.
Analysts found that Americans repaid a total of $169 billion in the second quarter of this year, about 216% more than the average for the second quarter of the past 19 years.
Consumers paid 20% more in the second quarter of this year than in the first quarter, but 5% less than in the second quarter of 2022 last year.
According to reports by WalletHub and the New York Fed, the average US household debt was $101,915 at the end of last year.
According to the New York Fed, housing-related debt included $393 billion in newly originated mortgage debt in the second quarter of 2023, “reflecting a modest increase in purchase originations amid a slowdown in refinancing originations. ”.
according to News release from the New York Fed“Home loan balances were little changed from the previous quarter, at $12.1 trillion at the end of June, largely due to lower mortgage originations and lower home prices. Mortgage originations, including refinancings, were $393 billion, up $70 billion from the first quarter.”
WalletHub analysts further explored the role of mortgage and home equity liabilities in overall U.S. debt, showing that mortgage debt fell by about $161 billion in the second quarter of 2023. This is the sixth largest decline in a second quarter since 2004 when the figure was recorded. First recorded.
As noted above, total mortgage debt fell to $1.204 trillion in Q2 2023, about $1.42 trillion below its 2008 peak.
The average household mortgage debt has been $101,001 since Q2 2023. That’s $14,260 below the mortgage “breaking point” predicted by analysts, according to WalletHub.
Debt from the home equity line of credit, HELOC, decreased by $2.7 billion in Q2 2023. It was the 15th straight pay cut in the second quarter, but the fifth lowest since 2004.
As recorded by WalletHub, total HELOC debt fell to $341 billion in the second quarter of this year, $685 billion below its peak.
Households had an average HELOC debt of $2,858 at the end of the second quarter of this year.
Mortgages account for more than 70% of U.S. household debt, according to the New York Fed. According to WalletHub, other US household debt consists of student loans, auto loans, credit card debt, and “other.”
To read the full report with more data, graphs and methodology, click here.