Large Bank Supervision Forum 2023

SLOWING TRANSACTION ACTIVITY Colliers Expects Steep Declines in Real Estate Sales Until Second Half of 2023

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The sum of money owed by U.S. households mounted during the fourth quarter, climbing $394B to $16.90T. That's the largest Q/Q increase in household debt in 20 years , taking balances $2.75T higher than at the end of 2019, before the pandemic, according to the Federal Reserve Bank of New York's Household Debt and Credit Report published Thursday. Mortgage balances accounted for roughly 65% of the overall increase, standing at $11.92T at the end of December. Credit card balances jumped by $61B to $986B, marking a new series high. Ted Rossman, senior industry analyst at Bankrate, cited the combination of strong consumer spending, persistent inflation and elevated credit card rates as the main drivers behind record high credit card balances. "It’s triple trouble for credit card borrowers. Balances are up, rates are up and more people are carrying credit card debt (46 percent of credit cardholders, up from 39 percent a year ago)," he added. Auto loan balances increased by $28B during Q4, and student loan balances accelerated by $21B to $1.60T.

https://seekingalpha.com/news/3937286 ‐ us ‐ household ‐ debt ‐ climbs ‐ by ‐ 394b ‐ in ‐ q4 ‐ largest ‐ increase ‐ in ‐ two ‐ decades ‐ ny ‐ fed

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