Fed Says $19 Trillion in Household Debt Remains Resilient as Auto and Student Loan Stress Persists
Updated
Updated · The New York Times · Aug 12
Fed Says $19 Trillion in Household Debt Remains Resilient as Auto and Student Loan Stress Persists
2 articles · Updated · The New York Times · Aug 12
Summary
$19 trillion in U.S. household debt still points to broadly solid household finances, the Federal Reserve said, even as weaker borrowers show mounting strain.
Mortgages — about 70% of total household debt — helped anchor that resilience in the second quarter, with balances edging down and many homeowners still locked into low fixed rates.
Stress remains concentrated in auto and student loans, underscoring a widening divide between asset-owning households and consumers with thinner financial cushions.
Real average hourly earnings fell from July 2025 to July 2026 after inflation, while high home prices, elevated mortgage rates and tight lending standards keep many buyers shut out of the housing market.