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33 posts on "Household Finance"

August 14, 2014

Just Released: Looking under the Hood of the Subprime Auto Lending Market

Andrew Haughwout, Donghoon Lee, Joelle W. Scally, and
Wilbert van der Klaauw


Today, the New York Fed released the Quarterly Report on Household Debt and Credit for the second quarter of 2014. Aggregate debt was relatively flat in the second quarter as housing-related debt shrank, held down by sluggish mortgage originations. But non-housing debt balances increased across the board, with especially strong gains in auto loans. Auto loan balances, which include leases, have increased for thirteen straight quarters, and originations have not been this high since the third quarter of 2006. The Quarterly Report and the following analysis are based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data.

Continue reading "Just Released: Looking under the Hood of the Subprime Auto Lending Market" »

Posted by Blog Author at 11:15 AM in Economic History, Household Finance | Permalink | Comments (3)

June 26, 2014

From Our Archive: Student Debt in Perspective

The Editors

We read with interest a new Brookings Institution report, Is a Student Loan Crisis on the Horizon?, assessing the weight of the student debt burden. It was also pleasing to see the New York Times, several of our Twitter followers, and others citing work on this blog in counterpoint.

Continue reading "From Our Archive: Student Debt in Perspective" »

Posted by Blog Author at 3:00 PM in Education, Household Finance, Housing, Labor Economics | Permalink | Comments (0)

June 05, 2014

What Americans (Don’t) Know about Student Loan Collections

Basit Zafar, Zachary Bleemer, Meta Brown, and Wilbert van der Klaauw

U.S. student debt has more than tripled since 2004, and at over $1 trillion is now substantially greater than both credit card and auto debt balances. There are substantial potential benefits to be gained from taking out a student loan to fund a college education, including higher earnings and lower unemployment rates for college grads. However, there are significant costs to having student debt: The loans frequently carry relatively high interest rates, delinquency is common and costly (involving potential late fees and collection fees), and the federal government has the power to garnish the wages of individuals with delinquent federally guaranteed student loans (in fact, reported federal recovery rates on defaulted direct student loans exceed 70 percent). The ability of U.S. households to make well-informed decisions regarding higher education and student loan take-up for themselves (or members of their households) depends on the extent to which they accurately perceive the costs and benefits of such choices. To what extent does the American public understand the implications of student loan indebtedness? To shed light on this question, we went out and surveyed U.S. households.

Continue reading "What Americans (Don’t) Know about Student Loan Collections" »

Posted by Blog Author at 7:00 AM in Education, Household Finance, Labor Economics | Permalink | Comments (1)

May 28, 2014

Rising Household Debt: Increasing Demand or Increasing Supply?

Basit Zafar, Max Livingston, and Wilbert van der Klaauw

Total consumer debt continued to increase in the first quarter of this year, marking the first time since the recession that aggregate debt had grown for three consecutive quarters, according to the May 2014 Quarterly Report on Household Debt and Credit. Is this increase in household debt driven by changes in supply or demand? The January 2014 and April 2014 Senior Loan Officer Opinion Surveys (SLOOS) show an increase in lenders’ willingness to make consumer loans over the last several quarters and an increase in the number of lenders reporting looser lending standards, which indicates that credit supply is increasing. To get a better sense of the underlying factors in the evolution of household credit conditions, in February we surveyed 1,110 respondents of the New York Fed’s Survey of Consumer Expectations (SCE) about their ability to obtain credit over the past twelve months and their expectations about future credit access.


Continue reading "Rising Household Debt: Increasing Demand or Increasing Supply?" »

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

May 13, 2014

Just Released: Young Student Loan Borrowers Remained on the Sidelines of the Housing Market in 2013

Meta Brown, Sydnee Caldwell, and Sarah Sutherland

Last year, our blog presented results from the FRBNY Consumer Credit Panel (CCP) indicating that, at a time of unprecedented growth in student debt, student borrowers were collectively retreating from housing and auto markets. In this post, we compare our 2012 findings to the news for 2013.

Continue reading "Just Released: Young Student Loan Borrowers Remained on the Sidelines of the Housing Market in 2013" »

Posted by Blog Author at 11:15 AM in Economic History, Education, Household Finance, Housing | Permalink | Comments (3)

February 18, 2014

Just Released: Who’s Borrowing Now? The Young and the Riskless!

Andrew Haughwout, Donghoon Lee, Wilbert van der Klaauw, and David Yun

According to today’s release of the New York Fed’s 2013:Q4 Household Debt and Credit Report, aggregate consumer debt increased by $241 billion in the fourth quarter, the largest quarter-to-quarter increase since 2007. More importantly, between 2012:Q4 and 2013:Q4, total household debt rose $180 billion, marking the first four-quarter increase in outstanding debt since 2008. As net household borrowing resumes, it is interesting to see who is driving these balance changes, and to compare some of today’s patterns with those of the boom period.

Continue reading "Just Released: Who’s Borrowing Now? The Young and the Riskless!" »

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

December 06, 2013

Introducing the FRBNY Survey of Consumer Expectations: Household Finance Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In this fourth and final post in our series describing the new FRBNY Survey of Consumer Expectations (SCE), we present the final component of the survey, dedicated to household finance. The information collected in the SCE on household income, spending, and access to credit will provide a real-time picture of U.S. households’ situation and perceptions as well as rich and unique data for use by policymakers, researchers, and the public. While other surveys, such as the triennial Survey of Consumer Finances, provide data on the finances of U.S. families, few data sources provide timely information on such a broad set of outcomes.


Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Household Finance Expectations" »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (3)

December 05, 2013

Introducing the FRBNY Survey of Consumer Expectations: Labor Market Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In the previous two blog postings in this series, we described the goals, structure, and content of the new FRBNY Survey of Consumer Expectations (SCE) and presented some findings regarding inflation expectations. In this third posting, we focus on the labor market component of the SCE.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Labor Market Expectations" »

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

December 04, 2013

Introducing the FRBNY Survey of Consumer Expectations: Measuring Price Inflation Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In this second of a series of four blog postings, we discuss the data on inflation expectations collected in our new FRBNY Survey of Consumer Expectations (SCE). Inflation expectations are a key consideration for monetary policy as they are believed to influence consumer behavior, thereby affecting economic activity and actual inflation. The SCE data on inflation expectations represent a major innovation as they contain information not previously collected from consumers on a regular basis. In this post, we provide some background on the survey and present some initial findings.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Measuring Price Inflation Expectations" »

Posted by Blog Author at 7:05 AM in Household Finance, Monetary Policy | Permalink | Comments (0)

Introducing the FRBNY Survey of Consumer Expectations: Survey Goals, Design, and Content

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

Starting in the first quarter of 2014, the Federal Reserve Bank of New York (FRBNY) will begin reporting findings from a new national survey designed to elicit consumers’ expectations for a wide range of household-level and aggregate economic and financial conditions. This week, we provide an introduction to the new survey in a series of four blog posts. In this first post, we discuss the overall objectives of the new survey, its sample design, and content. In the posts that follow, we will provide further details and present preliminary findings from the survey on three broad categories of expectations: those relating to inflation, the labor market, and household finance.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Survey Goals, Design, and Content " »

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