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Mortgage balances shown on consumer credit reports increased by $282 billion in the second quarter of 2021 and stood at $10.44 trillion at the end of June. Balances on home equity lines of credit (HELOC) saw a $13 billion decline, the 18th consecutive decrease since 2016Q4, bringing the outstanding balance to $322 billion. Credit card balances grew in the second quarter, by $17 billion, ending the previous 4 quarter consecutive declines in balances during the pandemic. Still, credit card balances remain $140 billion lower than they had been at the end of 2019. Auto loan balances increased by $33 billion in the second quarter. Student loan balances declined by $14 billion. In total, non-housing balances grew by $44 billion, with increases in auto loans and credit card balances offsetting the decline in student loan balances.
Credit card balances grew in the second quarter, by $17 billion, ending the previous 4 quarter consecutive declines in balances during the pandemic. Still, credit card balances remain $140 billion lower than they had been at the end of 2019. Auto loan balances increased by $33 billion in the second quarter. Student loan balances declined by $14 billion. In total, non-housing balances grew by $44 billion, with increases in auto loans and credit card balances offsetting the decline in student loan balances.
Aggregate delinquency rates have remained low and declining since the beginning of the pandemic recession, reflecting an uptake in forbearances (provided by both the CARES Act and voluntarily offered by lenders), which protect borrowers’ credit records from the reporting of skipped or deferred payments. As of late June, 2.7% of outstanding debt was in some stage of delinquency, a 2.0 percentage point decrease from the fourth quarter of 2019, just before the Covid pandemic hit the United States. Of the $405 billion of debt that is delinquent, $316 billion is seriously delinquent (at least 90 days late or “severely derogatory”, which includes some debts that have been removed from lenders’ books but upon which they continue to attempt collection).
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