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50 posts on "Household Finance"

July 13, 2015

The Survey of Consumer Expectations Turns Two!



Survey of Consumer Expectations

The Federal Reserve Bank of New York’s Survey of Consumer Expectations (SCE) turned two years old in June. In this post, we review some of the key findings from the first two years of the survey’s history, highlighting the most noteworthy trends revealed in the data.

Continue reading "The Survey of Consumer Expectations Turns Two!" »

Posted by Blog Author at 11:00 AM in Household Finance, Labor Economics | Permalink | Comments (0)

July 08, 2015

How Sensitive Is Housing Demand to Down Payment Requirements and Mortgage Rates?



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When a household is looking to buy a home, financial considerations are usually very important. In particular, in deciding “how much house to buy,” a household must ponder how large a down payment it can make at the time of purchase, and also how much it can afford to pay each month. The minimum required down payment and the interest rate on available mortgages (which determines the monthly payment) are key elements in the decision. When these variables change, this likely affects the price a household is willing and able to pay for a home, and thus the housing market overall. However, measuring the strength of these effects is notoriously difficult. In this post, which is based on a recent staff report, we describe a novel approach to measure these effects. We find that a change in down payment requirements tends to have a large effect on housing demand—households’ willingness to pay for a given home—especially for current renters, whereas the effects of a change in the mortgage rate are modest.


Continue reading "How Sensitive Is Housing Demand to Down Payment Requirements and Mortgage Rates? " »

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

May 28, 2015

Just Released: 2015 SCE Housing Survey Shows Households Optimistic about Housing Market



LSE_2015_housing-survey-annual-450_art

The Federal Reserve Bank of New York today released results from its 2015 SCE Housing Survey. The survey, administered to 1,205 U.S. household heads in February, is a follow-up to the one conducted in February 2014. The purpose of the effort is to collect rich and high-quality information on consumers’ experiences and expectations regarding housing. The survey collects data on individuals’ perceptions and expectations of the growth in home prices, intentions regarding moving or buying a new home, and their access to credit, among other things.

Continue reading "Just Released: 2015 SCE Housing Survey Shows Households Optimistic about Housing Market" »

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

May 12, 2015

Just Released: Mortgage Borrowing among Most Creditworthy Abates



Household-credit-debt-450

Today’s release of the New York Fed’s Quarterly Report on Household Debt and Credit for the first quarter of 2015 reports a flattening in household debt balances. The slow growth in debt balances has left many wondering about the dynamics behind this change—who is borrowing, and who is paying down their balances? Thus, we use the same data set, the New York Fed Consumer Credit Panel (which is itself based on Equifax credit data) to identify the changes in balances by credit score, updating a post from last year with more recent data and also providing an in-depth look at the change in mortgage balances.

Continue reading "Just Released: Mortgage Borrowing among Most Creditworthy Abates " »

Posted by Blog Author at 11:15 AM in Household Finance, Housing | Permalink | Comments (0)

April 16, 2015

Just Released: Press Briefing on Student Loan Borrowing and Repayment Trends, 2015



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This morning, Jamie McAndrews, the Director of Research at the Federal Reserve Bank of New York, spoke to the press about the economic recovery, and his speech was followed by a special briefing by New York Fed economists on student loans. Here, we provide a short summary of the student loan briefing.

Continue reading "Just Released: Press Briefing on Student Loan Borrowing and Repayment Trends, 2015" »

Posted by Blog Author at 12:00 PM in Household Finance | Permalink | Comments (2)

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)
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