Through figures from the Federal Reserve Board, NAHB Eye on Housing reports that consumer credit increased by a seasonally adjusted annual rate of 7.9 percent during November to $3.75 trillion.
Broken down, revolving credit (credit cards, for example) grew 13.5 percent and non-revolving credit (student loans and auto loans) expanded 5.9 percent. Non-revolving credit accounts for nearly three-quarters of all consumer credit.
Consumers’ ability to service the major components of non-revolving debt, student and auto loans, has come into question. The proportion of student loan debt outstanding that is 90 or more days past due has been growing consistently since at least 2003. The share 90 or more days past due remains especially elevated in recent years though the upward trend has abated.
Advertisement
Related Stories
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
Economics
NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon
Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic