US household debt rises in Q3, driven by student loans, mortgages - Business Insider

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US household debt rises in the third quarter, boosted by mortgage borrowing and student loans

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Increased mortgage borrowing was likely driven by homeowners "taking advantage of a low-interest rate environment," New York Fed research officer Donghoon Lee said in aStudent loan debt jumped by $20 billion to $1.5 trillion in the third quarter. The Fed also released a study detailing student loan default rates in black-majority zip codes landing twice as high as the rate in white-majority areas.Total US household debt grew by $92 billion to $13.

Student loan debt jumped by $20 billion to $1.5 trillion in total. More than 10% of loans were at least 90 days delinquent or in default, the highest proportion among the Fed's highlighted debt categories. Fed chair Jerome Powell reiterated the central bank's stance Wednesday. The Fed's current stance is optimal for the current pace of economic growth, he said, and central bank officials would need to see additional threats or uncertainties to consider additional cuts.The central bank also releasedon Wednesday detailing racial disparities in student loan delinquencies.

 

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