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Household debt ticked up 0.1% to $17.06 trillion, as mortgage balances - the biggest portion, and typically the biggest driver, of overall household debt - were largely unchanged. But the quarter-to-quarter trend appeared less alarming, with New York Fed researchers noting a leveling out near pre-pandemic levels in the most recent two quarters. New York Fed researchers attributed the decline to the timing of the academic year, as well as to some small forgiveness programs kicking in. Overall mortgage balances ticked down to $12.01 trillion, from $12.04 trillion in the prior quarter, reflecting some changes in credit reporting that are expected to reverse next quarter, New York Fed researchers said. Originations rose about 11% to $179 billion, reflecting the sharp rise in car prices; the number of newly opened loans remains below pre-pandemic levels, the report said.

Persons: Lee Jae, Ann Saphir, Paul Simao, Jonathan Oatis Organizations: REUTERS, New York Federal Reserve Bank, Fed, New York, Reuters, New York Fed, Mortgage, Auto, Thomson Locations: Seoul, U.S

☆ NY Fed: Credit card debt sees biggest increase since 2021 & auto loan debt rises 1.3% in Q2
▼ + stars: | 2023-08-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNY Fed: Credit card debt sees biggest increase since 2021 & auto loan debt rises 1.3% in Q2CNBC's Steve Liesman reports on new data from the New York Federal Reserve.

Persons: Steve Liesman Organizations: New York Federal Reserve

☆ Consumer credit card debt tops $1 trillion for the first time ever
▼ + stars: | 2023-08-08 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Consumer credit card debt just topped $1 trillion for the first time ever, according to the Federal Reserve. A recent survey from BankRate found 47% of consumers are carrying credit card debt from month to month. Consumer credit card debt increased 4.6% in the second-quarter to a record $1.03 trillion, compared to $986 billion in the first quarter. Lower-income households were more likely to carry credit card debt from month to month, according to the survey, with 53% of cardholders with annual incomes below $50,000 carrying debt. "Yes, that's a lot of credit card debt, but most people are worth a lot more."

Persons: Joelle Scally, BankRate, Bankrate, they're, Scally, Carson, Ryan Detrick Organizations: Federal Reserve, Federal Reserve Bank of New, New York Fed, Fed Locations: York, Federal Reserve Bank of New York, CreditCards.com

☆ Americans’ credit card debt hits a record $1 trillion
▼ + stars: | 2023-08-08 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

Minneapolis CNN —Americans’ credit card debt levels have just notched a new, but undesirable, milestone: For the first time ever, they’ve surpassed $1 trillion, according to data released Tuesday by the Federal Reserve Bank of New York. During the second quarter, credit card balances shot up by $45 billion, or nearly 4.6%, to land at $1.03 trillion, according to the New York Fed’s latest Quarterly Report on Household Debt and Credit. Rising credit card debt and auto loan balances helped to drive overall household debt levels up to $17.06 trillion for the quarter, the report showed. “Unfortunately, [credit card debt] is only going to go up from here,” Matt Schulz, chief credit analyst for LendingTree, told CNN. The number of people who made a hardship withdrawal during the second quarter surged from the first three months of the year to 15,950, an increase of 36% from the second quarter of 2022.

Persons: ” Matt Schulz, “ Organizations: Minneapolis CNN, Federal Reserve Bank of New, New, New York Fed, CNN, Bank of America Locations: Minneapolis, Federal Reserve Bank of New York, York, New York

☆ Credit card balances jumped in the second quarter and are above $1 trillion for the first time
▼ + stars: | 2023-08-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Total credit card indebtedness increased by $45 billion in the April-through-June period, an increase of more than 4%. The Fed's measure of credit card debt 30 or more days late rose to 7.2% in the second quarter, up from 6.5% in Q1 and the highest rate since the first quarter of 2012 though close to the long-run normal, central bank officials said. Total debt delinquency edged higher to 3.18% from 3%. "Credit card balances saw brisk growth in the second quarter," said Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed. Newly originated mortgages rose by $393 billion though total mortgage debt nudged lower to just over $12 trillion.

Persons: Joelle Organizations: New York Federal Reserve, Public Policy Research, New York Fed, Auto

☆ The top 10 most expensive states to live in based on living expenses — Hawaii is 50% above the national average
▼ + stars: | 2023-08-06 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +3 min

This amounts to 35% of the annual US household average income of $70,784. Hawaii residents, however, pay around 50% above this national average — forking out an average of $3,070 for their monthly expenses. Getty ImagesMonthly bill expense per household: $2,7274. Getty ImagesMonthly bill expense per household: $2,5696. Getty ImagesMonthly bill expense per household: $2,41310.

Persons: Justin Sullivan, Joseph Sohm, Barry Winiker Organizations: Service, Hawaii, Utilities, Swiet, Getty, ., Maryland, House of, New York New, Washington Housing, . Colorado Colorado, Alaska Locations: Hawaii, Doxo, Wall, Silicon, New York, California , New Jersey, Massachusetts, West Virginia , Mississippi , Arkansas , Oklahoma, Kentucky, Hawaii Lanai, California, San Francisco, . New Jersey Newark , New Jersey, . Massachusetts Pittsfield , Massachusetts, House of Annapolis , Maryland, . Connecticut, Hartford, Connecticut River , Connecticut, New York New York City, Seattle , Washington, . Colorado Colorado Springs , Colorado, Alaska Anchorage , Alaska

See our picks for the best personal loans for bad credit >>Steps to get a loan with bad credit1. Get your most recent credit scoreIt's one thing to suspect you have bad credit, and another to know exactly how bad it is. Consider a credit unionCredit unions are a great option for those looking to get a loan with bad credit. Where to get a personal loan with bad creditYou can get a personal loan with bad credit from many banks, credit unions, and online lenders. How to get a loan with bad credit FAQsIs there really a way to get a loan with bad credit?

Persons: It's, it's, We've, Jamie Young, Young, Priyanka Prakash, Prakash, Nathalie Noisette, Experian, Holly Johnson, Johnson, Banks, Josh Goodwin, Eric Rosenberg, you'll Organizations: Service, you'll, Credit, Companies, Business, Goodwin Mortgage Group, National Credit Union Administration, Chevron Locations: Wall, Silicon

☆ If you want to know where the economy is headed, don't watch the Fed. Track this interest rate instead. Anything above 4% is bad.
▼ + stars: | 2023-08-03 | by ( Alistair Barr | ) www.businessinsider.com time to read: +4 min

I watch the 10-year Treasury yield every weekday morning. If the 10-year Treasury bond yield stays around 4.1%, the cost of these mortgages could rise in coming days and set new 20-year highs. The 10-year Treasury bond yield is a common way to do this discounting. If the 10-year Treasury yield is 4%, that $10 billion is suddenly worth a whole lot less in today's money. This is often why tech stocks fall when the 10-year Treasury bond yield spikes.

Persons: that's, it's, United States FRED, Louis Organizations: Treasury, Service, Federal Reserve, Auto, Federal Reserve Bank of St, Stock, Nasdaq Locations: Wall, Silicon, United States

☆ It's the hardest time in recent history to get a car loan
▼ + stars: | 2023-08-02 | by ( Alexa St. John | ) www.businessinsider.com time to read: +4 min

It's harder than it has been in a long time to get a car loan. It comes amid increasing car loan payments and growing delinquency rates. Car buyers are facing some of the highest interest rates and monthly car payments in history — at a time that the rate of auto loan rejections is soaring. That's lower than the overall loan rejection rate of nearly 22%, but it's still up from 9% just four months earlier, and it marks the highest likelihood of auto loan rejection in recent history. Meanwhile, consumers keep getting hammered by high interest rates and even higher monthly car payments.

Persons: it's, Pat Ryan, CoPilot's Ryan, Ryan, Gary Guthridge, Guthridge Organizations: Federal Reserve, Buyers Locations: Edmunds, delinquencies

☆ The most—and least—expensive U.S. states based on the average cost of monthly expenses
▼ + stars: | 2023-08-02 | by ( Celia Fernandez | ) www.cnbc.com time to read: +3 min

The doxo United States of Bill Pay: State by State Bill Pay Market Report found that Hawaii's average monthly cost for household bills is 50% above the national average. The doxo report found that the average monthly bill for a mortgage in Hawaii is $2,247, while the average rent is $1,856. The average monthly bill cost for San Ramon is $4,390. According to the doxo report, the average mortgage in the state is $879, while the average monthly rent is $785. Denistangneyjr | E+ | Getty ImagesTop 10 least expensive states based on monthly expenses

Persons: Bill Pay, doxo, Doxo Organizations: State, Utilities, Auto insurance Cable, Mobile, Hawaii, Swiet, Hawaii California New Jersey Massachusetts Maryland Connecticut New, San, United, West Virginia Locations: United States, Hawaii Hawaii, Hawaii, States, O'ahu, Kailua, Hawaii California New Jersey Massachusetts Maryland Connecticut, Hawaii California New Jersey Massachusetts Maryland Connecticut New York Washington Colorado Alaska California, California, San Ramon, San Francisco, Virginia, West Virginia, Appalachian, Mountain, West

☆ CNBC Daily Open: July was great for stocks — and oil
▼ + stars: | 2023-08-01 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Europe's regional Stoxx 600 index eked out a 0.12% increase on the back of a dip in inflation and higher-than-expected economic growth in the euro zone. Upbeat euro zone figuresThe euro zone reported positive economic data Monday. CNBC Pro's Bob Pisani explains what drove the S&P to such heights, and where the index is going for the final five months of the year.

Persons: JPMorgan Chase JPMorgan Chase, Jeffrey Epstein, Virgin, Bob Pisani Organizations: CNBC, Federal, JPMorgan Chase JPMorgan, U.S . Virgin Islands, JPMorgan Locations: U.S

☆ Banks say conditions for loans to businesses and consumers will keep getting tougher
▼ + stars: | 2023-07-31 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Lending conditions at U.S. banks are tight and likely to get tighter, according to a Federal Reserve survey released Monday. The Fed's closely watched Senior Loan Officer Opinion Survey showed that while credit conditions got more strict, demand declined as well. On the issue of consumer lending, banks "reported having tightened standards for credit card loans and other consumer loans, while a moderate net share reported having done so for auto loans." At his-post meeting news conference last week, Fed Chairman Jerome Powell said he expected the loan survey to be "consistent with what you would expect." "You've got lending conditions tight and getting a little tighter, you've got weak demand, and you know, it gives a picture of a pretty tight credit conditions in the economy," Powell said.

Persons: Banks, Jerome Powell, You've, you've, Powell Organizations: Federal Reserve, Fed

The Fed's quarterly Senior Loan Officer Opinion Survey, or SLOOS, also showed that banks expect to further tighten standards over the rest of 2023. Monday's SLOOS report - which Fed policymakers had in hand last week when they decided to deliver an 11th interest-rate hike after skipping one at their June meeting - suggests credit tightening is ongoing. For small firms, a net 49.2% of banks said credit terms were stiffer, versus 46.7% in the last survey. Smaller net shares of banks reported tightening standards for auto loans, though terms for credit cards did tighten somewhat. While still weak, demand for auto loans was the least soft in four quarters, while demand for credit card loans was essentially flat after two straight negative quarters.

Persons: Monday's, You've, you've, Jerome Powell, Daniel Silver, Ann Saphir, Nick Zieminski, Dan Burns, Cynthia Osterman Organizations: Federal, Survey, Reuters, Thomson

☆ Here's why the Fed's rate hikes haven't actually hit Americans that hard
▼ + stars: | 2023-07-31 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

The Federal Reserve has raised interest rates 11 times in the last year and a half. This has prevented a lot of pain, as floating rate debt resets on a regular basis as benchmark rates rise. He pointed to separate Equifax data that shows nearly 70% of mortgages carry an interest rate below 4%. "Most auto, student, and personal loans carry fixed rates as well, further insulating borrowers from interest rate increases." "Borrowers seeking new credit have been directly affected by higher rates leading some to forego taking on additional credit," deRitis said.

Persons: Cristian deRitis, deRitis, Jerome Powell, hasn't Organizations: Federal, Service, Fed, Markets Locations: Wall, Silicon

☆ Should you pay your car loan off early? With interest rates rising, it may be a smart move
▼ + stars: | 2023-07-26 | by ( Mike Winters | ) www.cnbc.com time to read: +2 min

If the interest rate on your auto loan is within that range, or exceeds it, here's why it might be a smart move to work toward paying it off early. For used cars, financing costs are steeper, with average rates climbing from 7.4% to 11%. Deciding to pay off a car loan early depends on a number of factors, but lately, rising interest rates have made it more appealing than ever. However, average interest rates have changed: Now that auto loan rates are much higher, the amount you'd be able to earn in the market wouldn't outweigh how much you'd lose to interest on your loan. "I encourage people to pay off car loans early if their interest rates are higher than 5%," says Byrke Sestok, a CFP in New York.

Persons: Kevin Brady, Byrke Sestok Organizations: Bloomberg Locations: Edmunds, New York

☆ Key U.S. credit metrics that will inform the Fed's policy moves
▼ + stars: | 2023-07-26 | by ( Safiyah Riddle | ) www.reuters.com time to read: +4 min

Just how freely credit is flowing - and is likely to flow in the near term - is a key input. A valuable guide to that is the Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS), a quarterly survey of commercial banks that Fed officials consider as they debate policy moves. The Fed's SLOOS splits credit demand into several main categories, including firms of varying sizes for commercial and industrial loans, commercial and residential real estate and other consumer loans such as credit cards and auto loans. Demand for commercial real estate loans plummeted as remote work diminished the value of office space. By contrast, demand for credit card lending dropped more modestly, propped up by robust consumer spending and healthy household balance sheets.

Persons: Safiyah Riddle, Dan Burns Organizations: Federal Reserve, Senior, Bank Lending, Fed, Silicon Valley Bank, Securities, Dallas Fed, Thomson Locations: Silicon, U.S

☆ Another interest rate hike is likely coming from the Federal Reserve: Here are 5 ways it could affect you
▼ + stars: | 2023-07-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

"Rising interest rates can sometimes feel like a double-edged sword," said Kelly LaVigne, vice president of consumer insights at Allianz Life. As the federal funds rate rises, the prime rate does, as well, and credit card rates follow suit. The average credit card rate is now more than 20% — an all-time high, while balances are higher and nearly half of credit card holders carry credit card debt from month to month, according to a Bankrate report. Student loans Federal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. For now, anyone with existing federal education debt will benefit from rates at 0% until student loan payments restart in October.

Persons: Stefani Reynolds, they've, Kelly LaVigne, Brett House, WalletHub, Freddie Mac, Edmunds, Ivan Drury Organizations: Eccles Federal Reserve, Bloomberg, Getty, Reserve, Fed, WalletHub, Allianz Life, Columbia Business School, Treasury, Istock Locations: Washington, Edmunds

☆ A top economist says the stock-market mania reminds him of the dot-com and housing bubbles - and warns consumers are feeling the squeeze
▼ + stars: | 2023-07-20 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

David Rosenberg warned the buzz around stocks today is similar to the mania before past crashes. The economist noted that American consumers are running short of cash and struggling to borrow more. The veteran economist and Rosenberg Research president also rang the alarm on the US economy in a research note on Wednesday. "The balloon does have a lot of hot air in it," Rosenberg noted, suggesting it was hard to say when speculation and emotion would cease trumping fundamentals and rational thought. That has raised borrowing costs for consumers and businesses, and wreaked havoc on debt-fueled industries such as commercial real estate.

Persons: David Rosenberg, Rosenberg, Irving Fisher, Abby Joseph Cohen, Chuck Prince's doozy, you've, Merrill Lynch Organizations: Service, Rosenberg Research, North, Nasdaq, Dow Jones, Big Tech, Consumers, New York, Federal Reserve Locations: Wall, Silicon, North American

☆ Junk fees, medical debt and artificial intelligence: CFPB chief lays out regulatory agenda
▼ + stars: | 2023-07-20 | by ( Chelsey Cox | ) www.cnbc.com time to read: +5 min

Medical debtChopra said that tens of millions of Americans are battling medical debt. The crisis is compounded by debt collectors that add medical debt to credit reports as a means of coercion. The agency's crackdown on junk fees has prompted some policy changes at big banks, he added. "Many of them are getting rid of their reliance on junk fees and making their fees much more reasonable," Chopra said. Rep. Blaine Luetkemeyer, R-Mo., has said the CFPB has "no authority" on the issue because junk fees is not a legal term.

Persons: Rohit Chopra, Tom Williams, Andy Barr, Chopra, servicers, We're, Experian, Blaine Luetkemeyer, Luetkemeyer Organizations: Consumer Financial Protection, Banking, Housing, Urban Affairs, Cq, Inc, Getty, Consumer Financial, Bureau, Federal Reserve, Governors, CNBC, Education Department, U.S, Kaiser Family Foundation, Bank of America, Biden, GOP, Rep, Financial Services Locations: Ky

☆ Carvana shares surge on plans to cut debt load
▼ + stars: | 2023-07-19 | by ( Nathan Gomes | ) www.reuters.com time to read: +4 min

Companies Carvana Co FollowJuly 19 (Reuters) - Carvana (CVNA.N) shares soared as much as 43% on Wednesday after the troubled used-car retailer struck a deal with most of its term bondholders to cut its outstanding debt by more than $1 billion. Carvana had long-term debt of $6.54 billion as of June end, relatively unchanged from a year earlier. But Carvana has been struggling to sell cars acquired at elevated prices as buyers, hit by inflation and worried about a recession, cut spending. Carvana shares have lost 87% of their value in the past two years. In premarket trading on Wednesday, Carvana's shares rose as high as $57, in what traders said looked like a short squeeze.

Persons: John Zito, Carvana, Ernest Garcia's, Carvana's, Ortex, they're, Dennis Dick, Nathan Gomes, Bansari Mayur, Shivansh, Raechel, Medha Singh, Sriraj Kalluvila, Saumyadeb Chakrabarty, Anil D'Silva Organizations: Triple D, Carvana, Thomson Locations: Bengaluru

☆ NY Fed report finds Americans increasingly facing borrowing headwinds
▼ + stars: | 2023-07-17 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

REUTERS/Philippe Wojazer/IllustrationJuly 17 (Reuters) - Americans are increasingly getting shot down when they seek out loans, new data from the New York Fed, released Monday, said. The bank said that the overall rejection rate for credit applicants rose to its highest level since June 2018, and stood at 21.8%, from 17.3% in February. Rejection rates for credit cards, credit limit increases also gained ground. The rejection rate for mortgages stood at 13.2% in June from 10% in February, while the rejection rate for mortgage refinancing jumped to 20.8% last month, from 16.3% in the prior survey. The surge in home lending costs has caused Americans to cut back on borrowing there: The New York Fed reported in May that during the first quarter demand for mortgages fell even as overall household debt levels ticked higher.

Persons: Philippe Wojazer, —, Michael S, Aurora Ellis Organizations: American Express, REUTERS, New York Fed, York, Consumer, Thomson Locations: February’s

To calculate 28% of your monthly income, multiply your gross monthly income (that's your income before taxes) by 0.28. If you like to spend a large chunk of your paycheck on traveling, for example, a large monthly mortgage payment might not fit into your lifestyle. 1,000 ÷ 5,000 = 0.2To get a conventional mortgage, the maximum DTI you can have is typically 50%, including your proposed monthly mortgage payment. How much house can I afford frequently asked questionsHow much do you have to make a year to afford a $400,000 house? Mortgage interest rates can have a big impact on how much house you can afford.

Persons: you've, You'll, it's, Freddie Mac, Fannie Mae, you'll, homebuyers Organizations: National Association of Insurance, PMI Locations: Chevron, Arkansas, North Carolina

☆ Wells Fargo follows a solid quarter, promising investors something many of them count on
▼ + stars: | 2023-07-14 | by ( Zev Fima | ) www.cnbc.com time to read: +8 min

Don't let Friday's stock action fool you: Wells Fargo (WFC) had a very good quarter. Shares of Wells Fargo initially climbed more than 2% following the earnings release, before giving up some of those gains. Wells Fargo stock was trading up slightly and down slightly Friday afternoon. WFC YTD mountain Wells Fargo YTD performance Bottom line It was very good quarter for Wells Fargo as the better-than-expected headline results came on the back of a lower-than-expected efficiency ratio, and slightly higher-than-expected net interest margin (NIM). Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023.

Persons: Wells, Wells Fargo, NIM, Morgan Stanley, Jim Cramer's, Jim Cramer, Jim, Charlie Scharf, Patrick T, Fallon Organizations: —, Refinitiv, Auto, CNBC, Milken Institute Global Conference, Afp, Getty Locations: Wells Fargo, Wells, Beverly Hills , California

Jamie Dimon, the bank’s chief executive, has deep political connections, and his prognostications on the economy are scrutinized in some circles as closely as a central banker’s musings. The U.S. economy “continues to perform better than many had expected,” said Charles W. Scharf, the bank’s chief executive. Unlike the other banks, Citigroup reported a fall in second-quarter profit, although the decline was not as severe as analysts had predicted. The U.S. government debt-limit standoff in April and May was also reflected in the banks’ results, with Citi citing anxiety during the negotiations as pushing investment-banking clients to the “sidelines” during the second quarter. What’s NextIn the next week or so, a slew of other banks will report quarterly earnings.

Persons: Jamie Dimon, Dimon, didn’t, ”, Wells, “, Charles W, Scharf, Jane Fraser, Goldman Sachs Organizations: JPMorgan, Treasury, Citigroup, Citi, Western Alliance and Comerica Locations: U.S, Wells Fargo, Republic

☆ A look at the state of US bank credit as earnings season begins
▼ + stars: | 2023-07-14 | by ( Safiyah Riddle | ) www.reuters.com time to read: +5 min

Bank credit growth began slowing in the second half of last year and has slowed further since the SVB failure, although that deceleration has not been uniform. Meanwhile, here's a look at the current state of the bank credit scene, according to data published each week by the Fed. Reuters Graphics Reuters GraphicsCONSUMER CREDITThe Fed splits this category into three tranches: credit cards, auto loans and all other consumer loans. Bank credit card lending is the largest of the three at nearly $1 trillion, a record. Both CRE and residential real estate loans are still rising year over year, but at a much slower pace.

Persons: Banks, Safiyah Riddle, Dan Burns, Anna Driver Organizations: Silicon Valley Bank, Federal, Fed, Securities, Reuters, Reuters Graphics Reuters, Bank, Thomson Locations: U.S, Silicon, Bank

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