Liberty Street Economics
Return to Liberty Street Economics Home Page

45 posts on "Household Finance"

March 27, 2015

Just Released: SCE Credit Access Survey Shows Higher Likelihood of Consumers Applying for Credit



The Federal Reserve Bank of New York today released results from its February 2015 Survey of Consumer Expectations Credit Access Survey, which provides information on consumers' experiences with and expectations about credit demand and credit access. The survey shows little change in application rates for credit over the last twelve months, but a decline in rejection rates, in particular for credit card limit increases. The expectations component of the survey shows an increase in the average likelihood of consumers applying for credit over the next twelve months for all five credit products; the increase is most pronounced for mortgage refinances and higher credit card limits.

Continue reading "Just Released: SCE Credit Access Survey Shows Higher Likelihood of Consumers Applying for Credit" »

Posted by Blog Author at 10:15 AM in Household Finance | Permalink | Comments (0)

March 05, 2015

From the Vault: Tracking Subprime Auto Loans



Recent news of banks scaling back on the issuance of car loans to borrowers with a weak credit history, coupled with recent media investigations into auto lending fraud, have drawn renewed attention to a surge in subprime auto lending. That boom is one we’ve tracked on our blog as part of an effort to shed light on ongoing change in the consumer lending market.

Continue reading "From the Vault: Tracking Subprime Auto Loans" »

Posted by Blog Author at 1:45 PM in Household Finance | Permalink | Comments (1)

February 20, 2015

Payback Time? Measuring Progress on Student Debt Repayment



Correction: We changed the adjective describing borrowers owing less than $5,000 from “high-balance” to “small-balance” in the first line of the seventh paragraph. We regret the error.


Student-loan-3-133999137-450
Third in a three-part series
Student debt continues to make headlines because of its high balances and high rates of delinquency and default—troubling issues that we discussed in our previous posts this week. A less prominent, but still important, issue is the pace at which former students are—or are not—paying off their debts. This issue is important to borrowers because the longer they take to repay their debts, the more interest they accrue, the longer they have to worry about making payments, and the longer they have to deal with the consequences of unpaid debts. It’s also important to the macroeconomy because longer repayment periods mean that a large number of young adults may have their spending and housing purchase decisions constrained by student debt (and widespread delinquency) for many years, even if they eventually qualify for some debt forgiveness. For these reasons, in this third and final post of our student loan series, we use our Consumer Credit Panel (based on Equifax data) to examine how fast (or slow) student borrowers are able to pay off their loans.

Continue reading "Payback Time? Measuring Progress on Student Debt Repayment" »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (6)

February 19, 2015

Looking at Student Loan Defaults through a Larger Window



Student-loan-2-iStock_000035160778-450
Second in a three-part series
Most of our previous discussion about high levels of student loan delinquency and default has used static measures of payment status. But it is also instructive to consider the experience of borrowers over the lifetime of their student loans rather than at a point in time. In this second post in our three-part series on student loans, we use the Consumer Credit Panel (CCP), which is itself based on Equifax credit data, to create cohort default rates (CDRs) that are analogous to those produced by the Department of Education but go beyond their three-year window. We find that default rates continue to grow after three years and that performance by cohort worsened in the years leading up to the Great Recession.

Continue reading "Looking at Student Loan Defaults through a Larger Window " »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (6)

February 18, 2015

The Student Loan Landscape




StudentLoanLandscape
First in a three-part series
Student loans have recently attracted a huge amount of attention from the press and policymakers. In this post, the first in our three-part series this week, we’ll use our Consumer Credit Panel dataset, a representative sample drawn from anonymized Equifax credit data, to describe the landscape of the outstanding U.S. student loan portfolio. Much of our discussion will address updates to several graphs that we’ve presented before, most recently in a 2014 staff report, “Measuring Student Debt and Its Performance”; readers can find more detail there. We’ll also update some earlier analysis of the broader effects that student debt may be having on the economy, including data through 2014 on the relationship between student loans and mortgages that we discussed in a blog post last spring.

Continue reading "The Student Loan Landscape" »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (2)

February 17, 2015

Just Released: Student Loan Delinquency Rate Defies Overall Downward Trend in Household Debt and Credit Report for Fourth Quarter 2014



Today, the New York Fed released the Quarterly Report on Household Debt and Credit for the fourth quarter of 2014. The report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data. Overall, aggregate balances increased by $117 billion, or 1.0 percent, boosted by increases in all credit types except home equity lines of credit.

Continue reading "Just Released: Student Loan Delinquency Rate Defies Overall Downward Trend in Household Debt and Credit Report for Fourth Quarter 2014" »

Posted by Blog Author at 11:15 AM in Household Finance | Permalink | Comments (2)

February 04, 2015

Household Formation within the “Boomerang Generation”



Boomerang-Generation-83590572-450

Young Americans’ living arrangements have changed strikingly over the past fifteen years, with recent cohorts entering the housing market at much lower rates and lingering much longer in their parents’ households. The New York Times Magazine reported this past summer on the surge in college-educated young people who “boomerang” back to living with their parents after graduation. Joining that trend are the many other members of this cohort who have never left home, whether or not they attend college. Why might young people increasingly reside with their parents? They may be unable to find employment, they may be saving their income to pay down increasing levels of student debt, or they may be unable to afford the rent for an apartment in the face of lower income or higher housing prices.

Continue reading "Household Formation within the “Boomerang Generation”" »

Posted by Blog Author at 7:00 AM in Household Finance, Housing | Permalink | Comments (0)

December 19, 2014

Just Released: New Source for Perspective on Regional Household Debt and Credit



The New York Fed has released a new product—the Household Debt and Credit Report for the Second District—which tracks consumer credit conditions in the tri-state area. Our readers are already familiar with our Quarterly Report on Household Debt and Credit, which primarily tracks credit measures—including balances, delinquencies, and new originations—aggregated to the national level. This report will provide a detailed examination of borrowing and repayment behavior on an ongoing basis for New York, New Jersey, and Connecticut, and each of the five boroughs of New York City. It is based on the New York Fed’s Consumer Credit Panel (CCP), a 5 percent representative sample of credit reports from Equifax. In this post, we highlight selected findings from these new regional profiles.

Continue reading "Just Released: New Source for Perspective on Regional Household Debt and Credit" »

Posted by Blog Author at 11:15 AM in Household Finance | Permalink | Comments (1)

November 25, 2014

Just Released: Household Debt Balances Increase as Deleveraging Period Concludes



The New York Fed released the Quarterly Report on Household Debt and Credit for the third quarter of 2014 today. Balances continued to rise slightly, with an overall increase of $78 billion. The aggregate household debt balance now stands at $11.71 trillion, up 0.7 percent from the previous quarter, but still well below the peak of $12.68 trillion in the third quarter of 2008.

Continue reading "Just Released: Household Debt Balances Increase as Deleveraging Period Concludes" »

Posted by Blog Author at 11:15 AM in Household Finance | Permalink | Comments (2)

November 20, 2014

Introducing the SCE Credit Access Survey



Today, we are releasing new data on consumers’ experiences and expectations regarding credit demand. We’ve been collecting these data every four months since mid-2013, as part of our Survey of Consumer Expectations (SCE). Other data sources describing consumer credit either provide aggregates that are an interaction of credit supply and demand (such as the FRBNY Consumer Credit Panel), or show only short-term changes in supply and demand (as reported by the supply side in the Senior Loan Officer Opinion Survey), or are too infrequent to provide a real-time picture of changes in consumer credit demand and access (Survey of Consumer Finances). The goal of the SCE Credit Access Survey—which will henceforth be published every four months—is to fill this void. In this blog post, we provide an overview of the survey and highlight some of its features.

Continue reading "Introducing the SCE Credit Access Survey" »

Posted by Blog Author at 11:15 AM in Household Finance | Permalink | Comments (0)
About the Blog
Liberty Street Economics features insight and analysis from economists working at the intersection of research and Fed policymaking.

The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.

Upcoming Posts
Useful Links
Feedback & Comment Guidelines
Liberty Street Economics invites you to comment on a post.
Comment Guidelines
We encourage you to submit comments, queries and suggestions on our blog entries. We will post them below the entry, subject to the following guidelines:
Please be brief: Comments are limited to 1500 characters.
Please be quick: Comments submitted more than 1 week after the blog entry appears will not be posted.
Please try to submit before COB on Friday: Comments submitted after that will not be posted until Monday morning.
Please be on-topic and patient: Comments are moderated and will not appear until they have been reviewed to ensure that they are substantive and clearly related to the topic of the post. The moderator will not post comments that are abusive, harassing, or threatening; obscene or vulgar; or commercial in nature; as well as comments that constitute a personal attack.  We reserve the right not to post a comment; no notice will be given regarding whether a submission will or will not be posted.
Archives