U.S. household debt in Q2 rose at fastest pace since 2013

• U.S. household debt continued to surge in the second quarter, mostly thanks to housing, with historically low mortgage rates combining with low inventory to support all-time high home prices.
• Q2 household liabilities rose to $14.96T, up $313B, or 2.1% from the previous quarter, according to the New York Fed's Quarterly Report on Household Debt and Credit. Mortgage balances - the largest component of household debt - increased by $282B to $10.44T. Mortgage originations hit $1.2T in Q2, the largest gain in three quarters. According to the Financial Times, 44% of the $10.44T in mortgages at Q2's end were originated in the past year.
• Auto balances also increased by $33B in Q2 to a record $202B.
• Q2 credit card balances increased by $17B, offset by a $14B decline in student loan debt, according to Fed's report, with credit card debt still $140B lower than it had been at the end of 2019.
• The growing economy, not to mention supportive fiscal policies are helping a decline in delinquencies in most categories of borrowing, according to a Bloomberg report. One example is student debt, with about 5.7% of college loans 90+ days delinquent or in default at the end of June vs. more than 11% pre-pandemic.