Household Real Estate Asset Growth Continues in the Third Quarter of 2023


By Jesse Wade on December 11, 2023 • According to the 2023 third quarter release of the Federal Reserve Z.1 Financial Accounts of the United States, household real estate assets grew for the second consecutive quarter. The continued lack of existing for-sale inventory has contributed to the growth in households’ real estate assets. The level of household real estate assets increased by $510.25 billion from $45.03 trillion in the second quarter of 2023 to $45.54 trillion in the third quarter of 2023, a 1.33% increase. While the third quarter percentage change is smaller on a quarter-over-quarter basis, 1.33% compared to 5.86%, the year-over-year percent change in the third quarter is significantly higher than the second. Between the third quarter of 2023 and 2022, household real estate assets increased 4.65% on a year-over-year basis while the second quarter change between 2023 and 2022 was marginal at 0.47%. Last year, in the third quarter of 2022, real estate assets for households were falling from the second quarter peak as home prices were declining. Fast forward to today and the market value for real estate has seen large increases since the start of the year due to the lack of housing supply. Real estate secured liabilities of households’ balance sheets, i.e., mortgages, home equity loans, and HELOCs, increased over the third quarter from $12.84 trillion to $12.93 trillion, a 0.66% quarterly increase. Year-over-year, real estate liabilities have increased 3.10% from $12.54 trillion in the third quarter of 2022. The year-over-year growth of real estate liabilities has fallen from 9.88% in the first quarter of 2022 but remains positive despite limited mortgage activity. Aggregate owners’ equity (i.e., the difference between homeowners’ real estate assets and liabilities) rose from $32.19 trillion to $32.62 trillion, representing 71.62% of all owner-occupied household real estate. Owners’ equity share of real estate assets remained above 70% for the seventh consecutive quarter. ‹ Job Growth Remains Moderate in NovemberTags: home equity, homeowner equity, household balance sheets, household debt, market value, mortgage debt, residential real estate

Household Real Estate Asset Growth Continues in the Third Quarter of 20232023-12-11T08:22:28-06:00

Consumer Debt Grows at Slowest Pace Since 2020


By David Logan on November 8, 2023 • Consumer credit outstanding growth slowed to 0.4% in the third quarter of 2023 (SAAR) according to the Federal Reserve’s latest G.19 Consumer Credit report, as revolving debt grew 8.6% and nonrevolving debt declined 2.4%. On a monthly basis, revolving credit outstanding increased just 3.0% in September after surging 14.6% in August (SAAR). Total consumer credit outstanding stands at $4.98 trillion (break-adjusted[1] and seasonally adjusted), with $1.29 trillion in revolving debt and $3.69 trillion in nonrevolving debt. Seasonally adjusted revolving and nonrevolving debt accounted for 25.9% and 74.1% of total consumer debt, respectively. Revolving consumer credit outstanding as a share of the total increased 0.5 percentage point over the quarter and is the highest since Q1 2019. Auto and Student Loan Debt With every quarterly G.19 report, the Federal Reserve releases a memo item covering student and motor vehicle loans’ outstanding. Together, student and auto loans made up 88.6% of nonrevolving credit balances (NSA)—tied for the smallest share since Q1 2011 and equal to the share one year ago. The balance of student loans decreased 1.6% in the third quarter (not seasonally adjusted), superseding a prior month’s report that showed a $30.0 billion increase. In contrast, the amount of auto loan debt outstanding increased $14.2 billion and stands at $1.53 trillion (NSA).  [1] The results of the 2020 Census and Survey of Finance Companies–delayed by the pandemic–are now incorporated in the Consumer Credit (G.19) statistical releases and include large revisions dating back to June 2021. Rather than retain the large spike in credit that now appears in the raw data, we have used the “break-adjusted” historical time series developed by Moody’s Analytics and will continue to do so moving forward. Click here for more information. Related ‹ Small Jump In Mortgage Activity As Rates DecreaseTags: consumer credit, consumer debt, credit, credit card debt, credit conditions, debt, Federal Reserve, household debt, nonrevolving credit, nonrevolving debt, revolving credit, student loan debt, student loans

Consumer Debt Grows at Slowest Pace Since 20202023-11-08T12:18:34-06:00

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