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101 posts on "Household Finance"

June 27, 2018

Why New York City Subway Delays Don’t Affect All Riders Equally



LSE_2018_Why New York City Subway Delays Don’t Affect All Riders Equally

The state of the New York City subway system has worsened considerably over the past few years. As a consequence of rising ridership and decaying infrastructure, the network is plagued by delays and frequently fails to deliver New Yorkers to their destinations on time. While these delays are a headache for anyone who depends on the subway to get around, they do not affect all riders in the same way. In this post, we explain why subway delays disproportionately affect low-income New Yorkers. We show that wealthier commuters who rely on the subway are less likely to experience extensive issues on their commutes.

Continue reading "Why New York City Subway Delays Don’t Affect All Riders Equally" »

May 23, 2018

Mixed Impacts of the Federal Tax Reform on Consumer Expectations



LSE_Mixed Impacts of the Federal Tax Reform on Consumer Expectations


The Tax Cuts and Jobs Act of 2017 changed the tax brackets, tax rates, credits and deductions for individuals and similarly altered corporate tax rates, deductions and exclusions. In this post, we examine whether the reform has shifted individuals’ expectations about their financial situation and the macroeconomic outlook. We also ask whether households have already started to adjust their behavior in line with their expectations. In order to answer these questions, we use novel data from a special module of the New York Fed’s Survey of Consumer Expectations (SCE) fielded in February 2018 to a nationally representative sample of heads of households.

Continue reading "Mixed Impacts of the Federal Tax Reform on Consumer Expectations" »

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

May 17, 2018

Just Released: New York Fed Press Briefing Highlights Changes in Home Equity and How It’s Used



LSE_2018_Just Released: New York Fed Press Briefing Highlights Changes in Home Equity and How It’s Used

At a press briefing this morning, economists at the New York Fed focused on the evolution of housing wealth and its use as collateral. Their comments came in connection with the Center for Microeconomic Data’s release of its Quarterly Report on Household Debt and Credit for the first quarter of this year. The briefing opened with remarks from Director of Research Beverly Hirtle, who described the importance of housing wealth and how it has evolved since 2000. Bank economists then explored the data on housing wealth more deeply in this presentation, which includes three parts: (1) an overview of recent developments on household balance sheets, with a focus on housing values and mortgage debt; (2) a discussion of how housing wealth has changed over time and how it is distributed across households; and (3) facts on the changing nature of how households have used their home equity.

Continue reading "Just Released: New York Fed Press Briefing Highlights Changes in Home Equity and How It’s Used" »

Posted by Blog Author at 10:00 AM in Demographics, Household Finance, Mortgages | Permalink | Comments (0)

April 11, 2018

How Will the New Tax Law Affect Homeowners in High Tax States? It Depends



LSE_How Will the New Tax Law Affect Homeowners in High Tax States? It Depends

The Tax Cuts and Jobs Act of 2017 (TCJA) introduces significant changes to the federal income tax code for individuals and businesses. Several provisions of the new tax law are particularly significant for the owner‑occupied housing market. In this blog post, we compare the federal tax liability and the marginal after-tax cost of mortgage interest and property taxes under the old and new tax codes for a wide range of hypothetical recent home buyers in a high tax state. We find that impacts vary substantially along the income/home price distribution.

Continue reading "How Will the New Tax Law Affect Homeowners in High Tax States? It Depends" »

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

February 14, 2018

Landing a Jumbo Is Getting Easier



LSE_2018_Landing a Jumbo Is Getting Easier

The United States relies heavily on securitization for funding residential mortgages. But for institutional reasons, large mortgages, or “jumbos,” are more difficult to securitize, and are instead usually held as whole loans by banks. How does this structure affect the pricing and availability of jumbo mortgages? In this post we show that the supply of jumbo mortgages has improved in recent years as banks have become more willing to take on mortgage credit risk on their own balance sheets.

Continue reading "Landing a Jumbo Is Getting Easier" »

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

February 13, 2018

Just Released: Great Recession’s Impact Lingers in Hardest-Hit Regions



LSE_2018_Just Released: Great Recession’s Impact Lingers in Hardest-Hit Regions

The New York Fed’s Center for Microeconomic Data today released our Quarterly Report on Household Debt and Credit for the fourth quarter of 2017. Along with this report, we have posted an update of state-level data on balances and delinquencies for 2017. Overall aggregate debt balances increased again, with growth in all types of balances except for home equity lines of credit. In our post on the first quarter of 2017 we reported that overall balances had surpassed their peak set in the third quarter of 2008—the result of a slow but steady climb from several years of sharp deleveraging during the Great Recession.

Continue reading "Just Released: Great Recession’s Impact Lingers in Hardest-Hit Regions" »

December 20, 2017

The Fed’s Balance Sheet, Night Lights, and the Other Top LSE Posts of 2017



LSE_The Fed’s Balance Sheet, Night Lights, and the Other Top LSE Posts of 2017

In the spirit of this season of year-end lists of accomplishments, Liberty Street Economics offers a roundup of our most viewed posts. Our readers continued to gravitate toward timely, topical posts; our most popular explained how the Fed manages its enlarged balance sheet—a major focus of the FOMC, Congress, markets, and economists. Prompted by reader questions in response to their first post, the authors also penned a follow-up post. Another hit this year described an innovative indicator of economic growth—night light intensity measured via satellite—and used it to fact-check official Chinese growth estimates.

Continue reading "The Fed’s Balance Sheet, Night Lights, and the Other Top LSE Posts of 2017" »

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

November 22, 2017

Are Student Loan Defaults Cyclical? It Depends



LSE_Are Student Loan Defaults Cyclical? It Depends

This post is the second in a two-part series on student loan default behavior. In the first post, we studied how educational characteristics (school type and selectivity, graduation, and major) and family background relate to the incidence of student loan default. In this post, we investigate whether default behavior has varied across cohorts of borrowers as the labor market evolved over time. Specifically, does the ability of student loan holders to repay their loans vary with the state of the labor market? Does the type of education these students received make any difference to this relationship?

Continue reading "Are Student Loan Defaults Cyclical? It Depends" »

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

November 20, 2017

Who Is More Likely to Default on Student Loans?



Who Is More Likely to Default on Student Loans?

This post seeks to understand how educational characteristics (school type and selectivity, graduation status, major) and family background relate to the incidence of student loan default. Student indebtedness has grown substantially, increasing by 170 percent between 2006 and 2016. In addition, the fraction of students who default on those loans has grown considerably. Of students who left college in 2010 and 2011, 28 percent defaulted on their student loans within five years, compared with 19 percent of those who left school in 2005 and 2006. Since defaulting on student loans can have serious consequences for credit scores and, by extension, the ability to purchase a home and take out other loans, it’s critical to understand how college and family characteristics correspond to default rates.

Continue reading "Who Is More Likely to Default on Student Loans?" »

Posted by Blog Author at 7:00 AM in Education, Household Finance, Labor Economics | Permalink | Comments (8)

November 14, 2017

Just Released: Auto Lending Keeps Pace as Delinquencies Mount in Auto Finance Sector



LSE_Just Released: Auto Lending Keeps Pace as Delinquencies Mount in Auto Finance Sector

Total household debt increased by $116 billion to reach $12.96 trillion in the third quarter of 2017, according to the latest Quarterly Report on Household Debt and Credit released today by the New York Fed’s Center for Microeconomic Data. Household debt has been growing since mid-2013, boosted in part by steady growth in auto loan balances, which have grown for twenty-six consecutive quarters thanks to record-high levels of newly originated loans. Although new vehicle sales had begun to slump over the summer after several strong years of growth, September and October saw a rebound in sales, ending with over 18 million vehicles sold (seasonally adjusted at an annualized rate), and auto loan originations in the third quarter were commensurate with these numbers. In this post, we revisit the state of auto lending and auto loan performance, using the New York Fed Consumer Credit Panel which is based on Equifax credit data.

Continue reading "Just Released: Auto Lending Keeps Pace as Delinquencies Mount in Auto Finance Sector" »

Posted by Blog Author at 11:00 AM in Household Finance | Permalink | Comments (2)
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Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Asani Sarkar, all economists in the Bank’s Research Group.

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