In Q1 2023, total consumer debt increased by over $150B or 0.9% from the previous quarter to a new high of over $17T. While mortgage debt increased slightly to $12.04T in Q1 2023, driven by higher interest rates of 6.4%, mortgage originations plummeted 35% to $323.5B. - According to Andrew Haughwout of the New York Fed, even though the mortgage refinancing boom is over, its effects will be felt for a long time.
- Around 14 million mortgages were refinanced during the pandemic, with rate refinancing accounting for 64% of those transactions; As a result, borrowers saved an average of about $220 per month.
- Credit card delinquency rates rose by 0.6 percentage points to 6.5%, auto loan delinquency rates by 0.2 percentage points to 6.9%, and overall delinquency rates rose by 0.2 percentage points to 3%.
- Debt for auto loans grew to $1.56T, while student loan debt increased marginally to $1.6T.
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