Total Household Debt

“Mortgage balances—the largest component of household debt—rose by $85 billion in the third quarter and sat at $9.86 trillion on September 30. Mortgage originations, which include refinances, were at $1.05 trillion, the second highest volume in the history of the series and second only to the historic refinance boom in 2003 Q3.”

This comes from a new report on total household debt from the Federal Reserve Bank of New York. The topic of debt, specifically canceling student loan debt, has recently received a lot of attention in political circles.

When you hear about the size of the student loan market, currently $1.5 trillion, it’s natural to think that young people are drowning in it. That’s simply not the case for most people. According to the Brookings Institute, 6% of borrowers owe one-third of all outstanding student loan debt. 18% of borrowers owe less than $5,000.

Ben and I spoke about the idea of canceling debt, taxing stay-at-home workers, and much more on this week’s Animal Spirits on the podcast this week.

 

 

 

 

 

 

(Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers click here.)