As of the end of June, household debt was 2.1% higher than it was three months ago, according to the New York Fed.
Household debt as a share of the economy is still well below the highs set in the years before the 2008 financial crisis
Us household debt grew at its fastest pace since 2013 in the second quarter, driven by a mortgage boom. Low borrowing costs and a desire for more spacious home office space have spurred demand for mortgages.
Household debt rose by $313 billion to $14.96 trillion at the end of June, up 2.1 per cent from three months ago, according to a report released by the New York Fed on Tuesday. The increase mainly comes from the balance of mortgage loans.
Credit standards have been loosening for other types of credit, such as car loans and credit cards, according to a July senior loan commissioner survey released by the Federal Reserve on Monday.
Overall, household debt as a share of the economy is still well below the highs set in the years before the 2008 financial crisis. And some loan balances are still below pre-outbreak levels.
Although the credit card balance increased by $17 billion in the second quarter as the consumer economy rebounded, it was about $140 billion lower than at the end of 2019.
