Here’s what you need to know.
Consumer Debt
Total household debt increased $155 billion, or 1.1%, in the first quarter this year, according to a new report from the Federal Reserve Bank of New York. However, this data, which is through March 31, 2020, likely doesn’t include the full impact of the COVID-19 pandemic, which could show a larger increase in total consumer debt. The last two weeks of March are likely not included, since credit account data is updated monthly. What’s the debt breakdown across select categories during 1Q 2020, and what does it mean for you? Here’s a snapshot, plus some commentary and perspectives.
Mortgages
Mortgages are the highest category of consumer debt.
Total mortgage debt increased to $9.7 trillion.
Approximately 0.9% of mortgages became 30 days or more delinquent.
Approximately 75,000 received a foreclosure notation on their credit report.
The median credit score for new mortgage borrowers was 773, which represents a 14-point increase from one year prior.
