US Mortgage, Auto Delinquencies Hit Decade Highs as $18.8 Trillion Debt Masks K-Shaped Strain
Updated
Updated · CNN · Aug 11
US Mortgage, Auto Delinquencies Hit Decade Highs as $18.8 Trillion Debt Masks K-Shaped Strain
3 articles · Updated · CNN · Aug 11
Summary
New York Fed data showed Q2 mortgage borrowers fell 30 days behind at the highest rate since 2015, while serious auto delinquencies hit their highest level since 2010.
High prices, a tougher job market and recent gas-price spikes are squeezing lower-income households, even as many better-off Americans keep spending and stay current on debt.
Overall household debt edged down $13 billion to $18.8 trillion, but the Fed said a $74 billion mortgage reporting gap from servicer transfers distorted the quarter and should reverse next period.
Outside mortgages, most major debt categories rose, including a record $211 billion in new auto loans, underscoring how consumer borrowing remains active even as repayment stress builds for some borrowers.
The report adds to evidence of a K-shaped US economy: aggregate delinquencies remain below Great Financial Crisis levels, but financial strain is widening between wealthier and paycheck-to-paycheck households.