The second quarter marks the 16th consecutive quarter with an overall increase
Mortgages balances increased by $60 billion during the second quarter from the first quarter to total $9 trillion, according to the Quarterly Report on Household Debt and Credit issued by the Federal Reserve Bank of New York.
Compared to the year-ago period, the largest component of household debt increased by $308 billion.
Meanwhile, the downward trend in home equity lines of credit (HELOC) continued during the quarter. Balances dropped $4 billion quarter over quarter and $20 billion year over year to end the second quarter at $432 billion.
According to the report, newly originating mortgage borrowers had a median credit score of 760 during the quarter, remaining roughly unchanged.
Overall, total household debt increased $82 billion quarter over quarter and $454 billion year over year to total $13.29 trillion in the second quarter.
"Aggregate household debt grew for the 16th consecutive quarter in the second quarter of 2018," said Wilbert van der Klaauw, senior vice president at the New York Fed, "While overall delinquency rates have remained stable at relatively low levels, transition rates into delinquency have fallen noticeably for student debt over the past year, reflecting an improved labor market and increased participation in various income-driven repayment plans."
Mortgage debt had a flow into serious delinquency of 1.2% during the second quarter, compared to 1.1% in the prior period. Overall, the flow into serious delinquency remained steady quarter over quarter at 2.3%.
