econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 22 November 2015

Growth In Auto Loans, Mortgage Originations

from the New York Fed

Auto debt continued its upward climb during the third quarter of 2015, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit. Auto loan balances increased for the 18th straight quarter, this time by $39 billion, and stand at $1.05 trillion as of the end of September. The report is based on data from the New York Fed's Consumer Credit Panel, a nationally representative sample of household credit data drawn from anonymized Equifax credit data.

Total household indebtedness increased $212 billion from the second quarter. The growth was driven primarily by a $144 billion increase in mortgage balances. Mortgage originations increased to $502 billion, continuing an upward trend that began in the second quarter of last year. Student loan and credit card balances increased by $13 and $11 billion, respectively, while balances on Home Equity Lines of Credit (HELOC) declined by $7 billion.

Delinquency trends were mixed in the third quarter. Foreclosures hit a new low in the 17-year history of the data. The share of mortgage balances 90 or more days delinquent dipped to 2.3 percent from 2.5 percent in the previous quarter. Moreover, 14 percent fewer consumers had a bankruptcy notation added to their credit reports in the third quarter of this year compared to the same quarter in 2014. However, 11.6 percent of aggregate student loan debt is either 90+ days delinquent or in default.

Auto loan originations were $151 billion in the third quarter. New charts introduced in this quarter's report show that $33 billion of this sum was originated by borrowers with credit scores below 620, near the 10-year high. Said Donghoon Lee, Research Officer at the New York Fed:

The growth in auto loan balances and originations has been very robust. Credit conditions have remained attractive for auto purchasers with both prime and subprime credit."

Household Debt and Credit Developments as of Q3 2015:

Category

Quarterly Change*

Annual Change**

Total as of Q3 2015

Mortgage Debt

(+) $144 billion

(+) $129 billion

$8.26 trillion

HELOC

(-) $7 billion

(-) $20 billion

$492 billion

Student Loan Debt

(+) $13 billion

(+) $77 billion

$1.20 trillion

Auto Loan Debt

(+) $39 billion

(+) $111 billion

$1.05 trillion

Credit Card Debt

(+) $11 billion

(+) $34 billion

$714 billion

Total Debt

(+) $ 212 billion

(+) $355 billion

$12.07 trillion

*Change from Q2 2015 to Q3 2015

**Change from Q3 2014 to Q3 2015

90+ day delinquency rates:

Category

Q3 2015

Q2 2015

Mortgages

2.3%

2.5%

HELOC

2.4%

3.2%

Student Loans

11.6%

11.5%

Auto Loans

3.4%

3.4%

Credit Cards

8.2%

8.4%

All

3.8%

4.0%

  1. Delinquency rates are computed as the proportion of the total outstanding debt balance that is at least 90 days past due.

  2. As explained in a previous report, delinquency rates for student loans are likely to understate effective delinquency rates because about half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle. This implies that among loans in the repayment cycle delinquency rates are roughly twice as high.

About the report The Federal Reserve Bank of New York's Household Debt and Credit Report provides unique data and insight into the credit conditions and activity of U.S. consumers. Based on data from the New York Fed's Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data, the report provides a quarterly snapshot of household trends in borrowing and indebtedness, including data about mortgages, student loans, credit cards, auto loans and delinquencies. The report aims to help community groups, small businesses, state and local governments and the public to better understand, monitor and respond to trends in borrowing and indebtedness at the household level. Sections of the report are presented as interactive graphs on the New York Fed's Household Credit web page and the full report is available for download.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Is Free Trade Harming the Economy?
Bank of England Endorses Post-Keynesian Endogenous Money Theory
News Blog
63.4% Homeownership Rate In 2016 Was Lowest Since 1966
The Homeownership Gap Is Finally Closing - Part Four Of Five
Infographic Of The Day: The Best And Worst Financial Decisions People Make
Early Headlines: Asia Stocks Mixed, Oil Mixed, Dollar Up, Gold Down, Microsoft Growth, US Cities' Homicides Up, Battery Age, Higher-Priced Carbon, Sweden Crime Data, Russia Passes Saudi Arabia And More
February 20, 2017 Weather and Climate Report - Transition to Spring can be Cruel
More Buck For The Chuck
More About What's Going On In Retail
Your Dog Has A Better Memory Than A Chimpanzee
Where Shadow Economies Are Well Established
What We Read Today 20 February 2017
Successful SpaceX Launch &amp; Landing Of Falcon 9 + Dragon CRS-10 Mission To The ISS (2017-02-19)
Investor Bulletin: Savings And Investing Basics For Military Personnel
Does Growing Mismeasurement Explain Disappointing Growth?
Investing Blog
Market And Sector Analysis 19 February 2017
Dollar Looks To Head Higher
Opinion Blog
Fascism Defined And Described By Oswald Mosley
Charity Is Not How We Solve Poverty
Precious Metals Blog
Deflation And Gold: A Contrarian View
Live Markets
20Feb2017 Pre-Market Commentary: US Markets Closed Today In Observance Of The Presidents Day Holiday, US Dollar Slips, European Stocks Rise
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved