US household debt up modestly in third quarter, New York Fed says

Core Insights - Overall U.S. household debt levels increased by 1% or $197 billion in Q3, reaching $18.6 trillion, with a year-over-year increase of $642 billion [1][2] Borrowing Categories - Mortgage balances rose by $137 billion to $13.1 trillion, credit card balances increased by $24 billion to $1.23 trillion, and student loans grew by $15 billion to $1.65 trillion, while auto loan borrowing remained stable at $1.66 trillion [2] - The overall household debt balances are growing at a moderate pace, with delinquency rates stabilizing [2] Economic Conditions - The current state of the economy shows a softening labor market, with rising unemployment rates particularly affecting younger borrowers and Black and Hispanic borrowers, raising concerns about potential increases in delinquency rates [3] Student Loan Stress - Approximately 4.5% of all debt was in some form of trouble in Q3, with serious distress increasing across various borrowing types, excluding mortgage balances [4] - Student loans showed the largest transition into serious delinquency, with a transition rate of 14.3% in Q3, up from 0.77% a year ago [5][6] - 9.4% of total student loan debt was more than 90 days delinquent or in default, a decrease from 10.2% in Q2 but an increase from 7.8% in Q1 [6]