Tag Archive for ‘household balance sheets’

Income Growth Lagging Balance Sheet Improvements

During the second quarter of 2013, household balance sheets improved with increases in home values and reductions in mortgage debt, boosting household net worth. Since the 4th quarter of 2011, the aggregate value of owner-occupied real estate is up nearly $2.8 trillion. However, while balance sheets in aggregate have mended since the end of the Great Recession, income growth continues to lag…. Read More ›

Consumer Credit Expands On Auto, Student Loans

Data released by the Federal Reserve Board indicates that consumer credit continued to expand in July, albeit at a slower pace than in the recent past. According to the Federal Reserve’s G.19 survey, consumer credit outstanding grew at a seasonally adjusted annual rate of 4.4% and now stands at $2.9 trillion. However, the growth in consumer credit outstanding recorded in… Read More ›

Mortgages Less Likely to Become Seriously Delinquent

Data released by the Federal Reserve Bank of New York indicates that aggregate consumer debt outstanding, which includes mortgages, contracted by 0.7% or $78 billion on a not seasonally adjusted basis in the second quarter of 2013. This is the second consecutive quarter that aggregate consumer debt has declined on a quarter-over-quarter basis and the 7th decline in the past… Read More ›

House Prices See Steady Gains

Nationally, house prices continued to rise in May, contributing to the overall recovery for U.S. housing markets. According to the most recent release by the Federal Housing Finance Agency, U.S. house prices rose by 0.7% on a month-over-month seasonally adjusted basis in May. This is the sixteenth consecutive monthly increase for the House Price Index – Purchase Only. Since January… Read More ›

Soaring Revolving Credit May Not Indicate Strengthening Consumer Demand

The Federal Reserve Board reported that the total amount of consumer credit outstanding grew by a seasonally adjusted annual rate of 8.3% to $2.8 trillion in May, as debt associated with student and car loans, as well as credit card debt rose. In April, consumer credit outstanding rose by 4.6%. The month-over-month increase in consumer credit outstanding reflected acceleration in… Read More ›

Measures of Consumer Confidence Show Mixed Results but Similar Conclusions

Measures of consumer confidence were mixed in June. According to Thomson Reuters and the University of Michigan, the Consumer Sentiment Index was basically unchanged from May, falling by 0.5% on a monthly seasonally adjusted basis to 84.1. The final reading of consumer sentiment was revised up from the preliminary reading of 82.7 that was released earlier in the month. Meanwhile,… Read More ›

Household Balance Sheets: Continuing Fiscal Cliff Impact

During the first quarter of 2013, household balance sheets improved with increases in home values and reductions in mortgage debt, thereby boosting household net worth. These are favorable improvements that will help housing demand in 2013. In particular, over the last five quarters household real estate values have risen by more than $2 trillion. Since the end of the Great Recession such developments have typically… Read More ›

Growth in Consumer Credit Accelerates

According to the Federal Reserve Board, growth in the amount of consumer credit outstanding, this includes outstanding credit extended to individuals for household, family, and other personal expenditures, excluding loans secured by real estate, accelerated in April. According to the release, the amount of consumer credit outstanding increased at a seasonally adjusted annual rate of 4.7% in April, 1.1 percentage… Read More ›

Student Loans Conditions Vary Across the Country

Student loan debt reflects the cost of an investment in human capital. The typical return on this investment is characterized by both higher wages and a more stable employment. College graduates and those with some college experience tend to have higher wages and lower unemployment rates than their counterparts with a high school degree or less. However, failure to repay… Read More ›