The Center for Microeconomic Data at the Federal Reserve Bank of New York released its Quarterly Report on Household Debt and Credit. What does this mean?
According to the data, household debt rose to $18.8 trillion in Q4 2025, a 1.0% increase of $191 billion. The nationally representative Consumer Credit Panel of the New York Fed provided the data used in the report. A one-page synopsis of the main conclusions and the evidence behind them is included.
An related Liberty Street Economics blog article from the New York Fed also looked at the relationship between recent mortgage delinquency rates and regional differences in economic situations.
“As household debt levels grow modestly, mortgage delinquencies continue to increase,” said Wilbert van der Klaauw, Economic Research Advisor at the New York Fed. “Delinquency rates for mortgages are near historically normal levels, but the deterioration is concentrated in lower-income areas and in areas with declining home prices.”
Flow into Serious Delinquency (90 days or more delinquent)
| Category | Q4 2024 | Q4 2025 |
| Mortgage Debt | 1.09% | 1.38% |
| Home Equity Line of Credit | 0.56% | 1.24% |
| Student Loan Debt | 0.70% | 16.19% |
| Auto Loan Debt | 2.96% | 2.95% |
| Credit Card Debt | 7.18% | 7.13% |
| Other | 5.63% | 5.13% |
| ALL | 1.70% | 3.26% |
What This Means for U.S. Homebuyers
By the end of 2025, mortgage balances had reached $13.17 trillion, up $98 billion in the fourth quarter. At $1.28 trillion, credit card balances increased by $44 billion. After remaining stable in the previous quarter, auto loan balances rose by $12 billion to $1.67 trillion. Student loan holdings increased by $11 billion to $1.66 trillion, while home equity line of credit (HELOC) balances jumped by $11.6 billion to $434 billion. Compared to Q3 2025, non-housing balances increased by $81 billion, or 1.6%.
With $524 billion in new mortgage originations in Q4 2025, the pace of mortgage originations accelerated. This quarter saw $181 billion in new vehicle loans show up on credit reports, a little decrease from the $184 billion seen in Q3 2025. Credit card aggregate limits increased by an additional $95 billion. HELOC limits increased by $25 billion, or 2.5%, extending the growth of HELOCs that started in 2022.
With 4.8% of outstanding debt in some level of delinquent in Q4 2025, aggregate delinquency got worse. Mortgages and student loans rose in tandem with early delinquency transitions, but all other forms of debt remained stable. While auto loans and HELOC saw a tiny decline, transitions into significant delinquent increased for credit card balances, mortgages, and student loans.
Household Debt and Credit Developments as of Q4 2025
| Category | Quarterly Change * (Billions $) | Annual Change** (Billions $) | Total As of Q4 2025 (Trillions $) |
| Mortgage Debt | (+) $98 | (+) $565 | $13.17 |
| Home Equity Line of Credit | (+) $12 | (+) $38 | $0.434 |
| Student Debt | (+) $11 | (+) $49 | $1.664 |
| Auto Debt | (+) $12 | (+) $12 | $1.667 |
| Credit Card Debt | (+) $44 | (+) $66 | $1.277 |
| Other | (+) $14 | (+) $10 | $0.564 |
| Total Debt | (+) $191 | (+) $740 | $18.776 |
Note: *Change from Q3 2025 to Q4 2025
** Change from Q4 2024 to Q4 2025
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