Total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023 led by Mortgage, Credit Card, and Student Loan Balances.

Total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023

Household Debt and Credit Developments in 2023Q3:

Aggregate household debt balances increased by $228 billion in the third quarter of 2023, a 1.3% rise from 2023Q2.
Balances now stand at $17.29 trillion and have increased by $3.1 trillion since the end of 2019, just before the pandemic recession.

Mortgage balances shown on consumer credit reports increased by $126 billion during the third quarter of 2023 and stood at $12.14 trillion at the end of September.
Balances on home equity lines of credit (HELOC) increased by $9 billion, and now stand at $349 billion in aggregate. Credit card balances, which are now at $1.08 trillion outstanding, increased by $48 billion (4.7%).
Auto loan balances increased by $13 billion, continuing the upward trajectory that has been in place since 2011, and now stand at $1.6 trillion.
Other balances, which include retail cards and other consumer loans, were effectively flat, with a $2 billion increase. Student loans balances grew by $30 billion and now stand at $1.6 trillion.
In total, non-housing balances grew by $93 billion.

Mortgage originations, measured as appearances of new mortgages on consumer credit reports and including both refinance and purchase originations, were at $386 billion in 2023Q3, a modest decline from the previous quarter and well below the trilliondollar-plus quarterly origination volumes observed between 2020 and 2021.
Aggregate limits on credit cards increased by $113 billion in the third quarter, or a 2.5% increase from the previous quarter and an increase of 9.5% from one year ago.
Limits on home equity lines of credit (HELOC) were unchanged. Credit quality of newly originated loans was steady, with 4% of mortgages and 16% of auto loans originated to borrowers with credit scores under 620.
The median credit score for newly originated mortgages was flat at 770, while the median credit score of newly originated auto loans upticked to 719 from 716.

Aggregate delinquency rates were increased in the third quarter of 2023. As of September, 3.0% of outstanding debt was in some stage of delinquency, up by 0.4 percentage points from the second quarter yet 1.7 percentage points lower than the fourth quarter of 2019.
Delinquency transition rates increased for all product types, except for student loans.
Annualized, approximately 8% of credit card balances and 7.4% of auto loan balances transitioned into delinquency; with credit card delinquency transitions showing a 0.8 percentage point increase. Increases in credit card delinquency were the sharpest among borrowers between ages 30-39.
Delinquency transition rates for mortgages increased by 0.2 percentage points.
About 116,000 consumers had a bankruptcy notation added to their credit reports in 2023Q3, slightly more than in the previous quarter.
Approximately 4.7% of consumers have a 3rd party collection account on their credit report.

There was $386 billion in newly originated mortgage debt in 2023Q3.
About 36,000 individuals had new foreclosure notations on their credit reports, a small decline.
New foreclosures have stayed very low since the CARES Act moratorium was lifted.

Outstanding student loan debt increased by $30 billion and stood at $1.6 trillion in 2023Q3.
Missed federal student loan payments will not be reported to credit bureaus until 2024Q4.
Because of these policies, less than 1% of aggregate student debt was reported 90+ days delinquent or in default in 2023Q3 and will remain low until at least 2024Q4.

U.S. aggregate household debt increased by $228 billion to $17.29 trillion in Q3 2023, marking a 1.3% rise from Q2 and a $3.1 trillion increase since the end of 2019.
Mortgage balances rose by $126 billion to $12.14 trillion, while HELOC balances went up by $9 billion to $349 billion, and credit card debt jumped by $48 billion to $1.08 trillion.
Auto loan balances continued an upward trend with a $13 billion increase to $1.6 trillion, and student loan balances also grew by $30 billion, reaching $1.6 trillion.
Mortgage originations declined to $386 billion, a modest drop from Q2 and significantly lower than the volumes between 2020 and 2021; credit card limits rose by $113 billion, a 2.5% increase from Q2.
Delinquency rates increased to 3.0% of outstanding debt, with notable rises in credit card and auto loan delinquencies, particularly among borrowers aged 30-39.
Mortgage delinquency transitions increased slightly, and new foreclosure notations on credit reports slightly declined, remaining low post-CARES Act moratorium.
Student loan debt rose to $1.6 trillion, with missed payments not being reported to credit bureaus until Q4 2024, keeping delinquency rates reported artificially below 1% until then.