American households added US$155 billion of debt in the first quarter and overall debt levels rose to a new record at US$14.30 trillion, the Federal Reserve Bank of New York said on Tuesday in a report that provides a snapshot of where household balance sheets stood before the coronavirus pandemic brought much of the economy to a halt.
Mortgage balances rose by US$156 billion from the fourth quarter to US$9.71 trillion. But access to credit overall tightened slightly in the first quarter and other types of debt declined.The report provides a snapshot of consumer data as of March 31. But since credit accounts are updated once a month, the data may not fully reflect the effects of the pandemic, which led to widespread shutdowns and job losses in the second half of March.
Credit card balances and other types of debt declined by US$39 billion, a larger drop when compared to the same period last year. Mortgage originations for purchases and refinancing, along with new auto loans, were down from the fourth quarter. And the median credit score for people taking out new auto loans and mortgages was higher in the first quarter than it was at the end of 2019.