U.S. Household Debt Rose Moderately in Third Quarter - New York Fed

By Jessica Coacci

U.S. household debt rose 1.8% in the third quarter, a report released by the New York Fed said Tuesday.

Total U.S. household debt expanded by $334 billion to $19.1 trillion in the third quarter. The increase was led by mortgage and home equity line of credit originations, the NY Fed said.

"Although delinquency transition rates for housing debts have crept up, the overall credit quality of these loans remains strong," said Donghoon Lee, economic research adviser at the New York Fed.

Mortgage balances rose by $257 billion in the third quarter, totaling $13.4 trillion at the end of September. Meanwhile, home equity lines of credit balances rose by $23 billion and totaled $481 billion. That was the largest increase in HELOC balances observed since 2005.

The pace of mortgage originations grew notably, the NY Fed said, with $595 billion newly originated loans in the third quarter.

In addition, credit card balances rose by $22 billion and stood at $1.29 trillion, and auto loan balances increased by $21 billion to $1.73 trillion in the quarter. Aggregate limits on credit cards continued to rise, with a $115 billion uptick in the third quarter.

Rising household debt can signal an economy that is still in gear, but it also can serve as a warning. On the one hand, it can show consumers are confident enough to borrow and spend, and that banks are willing to lend to them. On the other hand, rising credit-card balances may suggest some households are struggling to keep up with expenses.

Aggregate delinquency rates worsened, the survey said, with 5% of outstanding debt in some stage of delinquency. Transition into early delinquency continued to tick up for auto loans and mortgages but improved slightly for credit cards, the NY Fed said.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

November 10, 2026 11:14 ET (16:14 GMT)