More Americans Are Tapping Home Equity Credit Lines, NY Fed Says

Posted by NeolibsLoveBeans

5 Comments

  1. NeolibsLoveBeans on

    (stolen summary lmao) New Fed of NY data for Q2 reflects interesting trends:

    * Household debt is now at $17.8T, an increase by $109B
    * Mortgage originations have dropped as previously noted, small increase of $77B to $12.5T of mortgage debt
    * Credit card balances at $1.14T that have increased by $27B
    * Auto-loan balances at $1.6T, increased by $10B

    Overall delinquencies at at 3.2%, same as last quarter – however there are 3 trends to notice:

    * 30+ days delinquent auto loans increased to 7.95%
    * credit card debt delinquent at 12 year high of 9.05%
    * credit card balances that are 90+ days delinquent now at 10%

  2. LtCdrHipster on

    Must be tempting to be able to tap into that sweet, sweet equity. If your house tripled in value over the last few years, and you’ve got some investments to make, why not?

  3. admiraltarkin on

    I did it in 2021 refinancing our 3 year old house from 4.25% to 2.25%. Was able to go from 30 years to 15 years and get $50k at closing while keeping our monthly payment the same.

    I doubt that’ll be possible for anyone anytime soon.

  4. Are we back to using our houses as ATM machines? What’s next? Subprime mortgages?

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