U.S. household debt stood at $18.8 trillion in the second quarter, according to the Federal Reserve Bank of New York. Mortgage balances declined, while auto loans, credit card balances and home-equity lines increased, providing a detailed snapshot of borrowing across major categories of consumer credit.
Key Takeaways
- U.S. household debt declined $13 billion to $18.8 trillion in the second quarter.
- Mortgage balances fell by $74 billion during the quarter.
- Auto loan balances increased by $28 billion to $1.713 trillion.
- Credit card balances rose $21 billion to $1.263 trillion.
- Home-equity lines of credit increased $13 billion to $459 billion.
U.S. household debt declined by $13 billion in the second quarter to $18.8 trillion, according to the Federal Reserve Bank of New York. The modest decrease reflected a $74 billion reduction in mortgage balances, while several other major forms of consumer borrowing increased during the quarter.
The quarterly figures provide a breakdown of how borrowing changed across mortgages, auto loans, credit cards and home-equity lines of credit. The overall decline therefore did not represent a uniform reduction in household borrowing.
Auto loan balances increased by $28 billion to $1.713 trillion. Credit card balances also increased, rising $21 billion to $1.263 trillion. Home-equity lines of credit grew by $13 billion to $459 billion.
The changes produced a small decline in total household debt because the reduction in mortgage balances exceeded the combined increases in the other categories reported in the quarter.
Mortgage balances remain a major component of household borrowing, making changes in that category significant to the overall debt figure. The second-quarter decline in mortgage balances offset increases recorded across several forms of non-mortgage credit.
The data also separate the amount of debt outstanding from changes in individual credit categories. An increase in a particular type of borrowing does not necessarily mean total household debt increased, because movements in other categories can offset it.
The Federal Reserve’s monetary policy also affects borrowing conditions across the economy. Recent expectations surrounding interest rates have remained an important factor for consumers and businesses, as Federal Reserve rate expectations influence the broader cost of credit.
Mortgage Balances Decline During the Second Quarter
Mortgage balances fell by $74 billion during the second quarter. The reduction was the largest reported change among the major household debt categories included in the Federal Reserve Bank of New York’s figures.
The decline in mortgage balances was larger than the $28 billion increase in auto loan balances, the $21 billion increase in credit card balances and the $13 billion increase in home-equity lines of credit.
Mortgage balances are included in the total household debt measure alongside other forms of consumer borrowing. The second-quarter decline therefore had a direct effect on the aggregate figure of $18.8 trillion.
The mortgage reduction also illustrates the difference between movements in secured and non-mortgage borrowing. While mortgage balances declined, households increased borrowing through auto loans, credit cards and home-equity lines.
The Federal Reserve Bank of New York’s quarterly figures provide separate measurements for these categories, allowing changes in household borrowing to be assessed by type rather than through the total debt figure alone.
For consumers and financial professionals reviewing household credit conditions, the category-level figures provide information about the direction of different forms of borrowing during the quarter.
The second-quarter data show that the decrease in aggregate debt was driven primarily by mortgage balances rather than by a reduction across all major forms of household credit.
Auto Loan Balances Increase to $1.713 Trillion
Auto loan balances increased by $28 billion in the second quarter, reaching $1.713 trillion. The increase made auto loans one of the categories contributing to higher household borrowing during the period.
Auto Loan Originations Reach $211 Billion
Auto loan originations totaled $211 billion during the second quarter. Originations measure new loans issued during the period and are distinct from the total outstanding balance.
The $1.713 trillion balance represents the amount of auto loan debt outstanding, while the $211 billion originations figure measures new auto lending during the quarter.
The distinction is important when interpreting consumer credit data. New loan originations can increase the amount of outstanding debt, while repayments and other balance changes can reduce it.
The increase in outstanding auto loan balances occurred alongside the decline in total household debt because mortgage balances decreased by a larger amount.
Auto loans were not the only form of non-mortgage borrowing that increased. Credit card balances and home-equity lines also recorded gains during the quarter.
The combination of these figures means the second-quarter household credit picture was characterized by different movements across borrowing categories rather than a single direction across all forms of debt.
Credit Card and Home-Equity Debt Rise
Credit card balances rose by $21 billion during the second quarter to $1.263 trillion. The increase added to the amount of non-mortgage household debt outstanding during the period.
Credit card debt differs from mortgage and auto loan balances because it represents revolving consumer credit. The second-quarter increase therefore contributed to the overall rise in this category even as total household debt declined.
Home-equity lines of credit also increased during the quarter. Balances rose by $13 billion to $459 billion.
The increase in home-equity lines occurred at the same time that mortgage balances declined. The two figures represent separate categories of household borrowing, so the increase in home-equity debt did not reverse the reported decrease in mortgage balances.
Together, the increases in auto loans, credit card balances and home-equity lines amounted to $62 billion. That increase was smaller than the $74 billion decline in mortgage balances, producing the $13 billion net decrease in total household debt.
The category-level figures provide a clearer picture of the second-quarter movement than the aggregate total alone. Total household debt declined, but several forms of consumer borrowing increased.
The household debt figures also provide context for reports on household financial stress, which have examined how housing and other essential expenses affect the finances of U.S. households.
Household Delinquencies Remain Broadly Stable
Household debt data also include information on delinquency, which measures debt that has fallen behind on required payments. In the second quarter, 4.7% of outstanding household debt was in some stage of delinquency.
The delinquency rate compared with 4.8% previously, indicating a modest decrease in the share of outstanding household debt reported as delinquent.
Credit card delinquency also remained broadly stable. The flow of credit card balances into serious delinquency was 6.97%, compared with 6.93% a year earlier.
Credit Card Delinquency Rates Remain Steady
The credit card figures provide a separate measure from the overall household delinquency rate. While total household debt declined during the quarter, credit card balances increased to $1.263 trillion and the flow into serious delinquency remained near the level reported a year earlier.
The combination of borrowing and delinquency figures gives a more detailed view of household credit conditions. Debt balances indicate the amount outstanding, while delinquency measures provide information about repayment status.
The second-quarter data therefore show several distinct developments at the same time. Total household debt declined slightly to $18.8 trillion, mortgage balances fell by $74 billion, and auto loans, credit card balances and home-equity lines increased.
Auto loan balances reached $1.713 trillion after rising $28 billion, while credit card balances reached $1.263 trillion following a $21 billion increase. Home-equity lines increased $13 billion to $459 billion.
The Federal Reserve Bank of New York’s figures also recorded $211 billion in auto loan originations during the quarter. That figure provides a measure of new auto lending alongside the total outstanding auto loan balance.
Frequently Asked Questions
How much U.S. household debt was outstanding in Q2 2026?
U.S. household debt stood at $18.8 trillion at the end of the second quarter, down $13 billion from the previous quarter.
How much did auto loan debt increase in Q2 2026?
Auto loan balances increased by $28 billion during the second quarter, reaching $1.713 trillion.
How much credit card debt do U.S. households hold?
Credit card balances reached $1.263 trillion in the second quarter after increasing by $21 billion.
Did mortgage debt increase or decrease in Q2 2026?
Mortgage balances decreased by $74 billion during the second quarter.
What was the U.S. household debt delinquency rate in Q2 2026?
The share of outstanding household debt in some stage of delinquency was 4.7% in the second quarter, compared with 4.8% previously.
