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Mortgage balances shown on consumer credit reports increased by $117 billion in the first quarter of 2021, and stood at $10.16 trillion at the end of March. Balances on home equity lines of credit (HELOC) saw a $14 billion decline, the 17th consecutive decrease since 2016Q4, bringing the outstanding balance to $335 billion. Credit card balances declined in the first quarter, by $49 billion, a substantial drop and the second largest quarterly decline seen since the series began in 1999. Credit card balances are $157 billion lower than they had been at the end of 2019, consistent with both paydowns among borrowers and reduced consumption opportunities. Auto loan balances increased by $8 billion in the first quarter. Student loan balances increased by $29 billion. In total, non-housing balances declined by $18 billion, with increases in auto and student loans offset by the declining credit card balance, and are now $49 billion below the 2019Q4 level.
Credit card balances are $157 billion lower than they had been at the end of 2019, consistent with both paydowns among borrowers and reduced consumption opportunities. Auto loan balances increased by $8 billion in the first quarter. Student loan balances increased by $29 billion. In total, non-housing balances declined by $18 billion, with increases in auto and student loans offset by the declining credit card balance, and are now $49 billion below the 2019Q4 level.
Aggregate delinquency rates have continued to decline 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 March, 3.1% of outstanding debt was in some stage of delinquency, a 0.1 percentage point decrease from the fourth quarter, and 1.5 percentage points lower than the rate observed in the first quarter of 2020, just as the Covid pandemic hit the United States. Of the $448 billion of debt that is delinquent, $343 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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