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128 posts on "Household Finance"

November 13, 2019

Just Released: Racial Disparities in Student Loan Outcomes



Just Released: Racial Disparities in Student Loan Outcomes

Total household debt balances increased by $92 billion in the third quarter of 2019, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. The balance increase reflected nearly across the board gains in various types of debt, with the largest gains of $31 billion in mortgage balances (0.3 percent) and $20 billion in student loan balances (1.4 percent). The Quarterly Report, and the following analysis, are both based on the New York Fed’s Consumer Credit Panel, which is itself based on anonymized Equifax credit report data. Our report also provides breakouts by age, and by state, demonstrating that patterns of borrowing and repayment are heterogeneous by those factors. But there are many other dimensions across which we see varying credit market outcomes.

Continue reading "Just Released: Racial Disparities in Student Loan Outcomes" »

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

October 17, 2019

Just Released: Introducing the SCE Public Policy Survey



Just Released: Introducing the SCE Public Policy Survey

Today, we are releasing new data on individuals’ expectations for future changes in a wide range of public policies. These data have been collected every four months since November 2015 as part of our Survey of Consumer Expectations (SCE). The goal of this post is to introduce the SCE Public Policy Survey and highlight some of its features.

Continue reading "Just Released: Introducing the SCE Public Policy Survey" »

Posted by Blog Author at 10:59 AM in Expectations, Household Finance, Wages | Permalink | Comments (0)

October 10, 2019

Is Free College the Solution to Student Debt Woes? Studying the Heterogeneous Impacts of Merit Aid Programs



Is Free College the Solution to Student Debt Woes? Studying the Heterogeneous Impacts of Merit Aid Programs

The rising cost of a college education has become an important topic of discussion among both policymakers and practitioners. At least eleven states have recently introduced programs to make public two-year education tuition free, including New York, which is rolling out its Excelsior Scholarship to provide tuition-free four-year college education to low-income students across the SUNY and CUNY systems. Prior to these new initiatives, New York, had already instituted merit scholarship programs that subsidize the cost of college conditional on academic performance and in-state attendance. Given the rising cost of college and the increased prevalence of tuition-subsidy programs, it’s important for us to understand the effects of such programs on students, and whether these effects vary by income and race. While a rich body of work has studied the effects of merit scholarship programs on educational attainment, the same is not true for the effects on financial outcomes of students, such as debt and repayment. This blog post reports preliminary findings from ongoing work, which is one of the first research initiatives to understand such effects.

Continue reading "Is Free College the Solution to Student Debt Woes? Studying the Heterogeneous Impacts of Merit Aid Programs" »

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

October 09, 2019

Who Borrows for College—and Who Repays?



Who Borrows for College—and Who Repays?

Student loans are increasingly a focus of discourse among politicians, policymakers, and the news media, resulting in a range of new ideas to address the swelling aggregate debt. Evaluating student loan policy proposals requires understanding the challenges faced by student borrowers. In this post, we explore the substantial variation in the experiences of borrowers and consider the distributional effects of various policy options.

Continue reading "Who Borrows for College—and Who Repays?" »

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

October 07, 2019

Introduction to Heterogeneity Series: Understanding Causes and Implications of Various Inequalities



Introduction to Heterogeneity Series: Understanding Causes and Implications of Various Inequalities

Economic analysis is often geared toward understanding the average effects of a given policy or program. Likewise, economic policies frequently target the average person or firm. While averages are undoubtedly useful reference points for researchers and policymakers, they don’t tell the whole story: it is vital to understand how the effects of economic trends and government policies vary across geographic, demographic, and socioeconomic boundaries. It is also important to assess the underlying causes of the various inequalities we observe around us, whether they are related to income, health, or any other set of indicators. Starting today, we are running a series of six blog posts (apart from this introductory post), each of which focuses on an interesting case of heterogeneity in the United States.

Continue reading "Introduction to Heterogeneity Series: Understanding Causes and Implications of Various Inequalities" »

August 13, 2019

Just Released: Mind the Gap in Delinquency Rates



Just Released: Decoding Delinquency

Total household debt balances increased by $192 billion in the second quarter of 2019, boosted primarily by a $162 billion gain in mortgage installment balances, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data (the mortgage installment balances exclude home equity lines of credit, which are reported separately and have been declining in balance for some time). The new mortgage total of $9.4 trillion is slightly higher than the previous high in mortgage balances from the third quarter of 2008 in nominal terms.

Continue reading "Just Released: Mind the Gap in Delinquency Rates" »

Posted by Blog Author at 11:00 AM in Credit, Household Finance | Permalink | Comments (2)

May 23, 2019

New China Tariffs Increase Costs to U.S. Households



New China Tariffs Increase Costs to U.S. Households

Tariffs on $200 billion of U.S. imports from China subject to earlier 10 percent levies increased to 25 percent beginning May 10, 2019, after a breakdown in trade negotiations. In this post, we consider the cost of these higher tariffs to the typical U.S. household.

Continue reading "New China Tariffs Increase Costs to U.S. Households" »

Posted by Blog Author at 7:00 AM in Household Finance, International Economics, Tariffs | Permalink | Comments (9)

May 22, 2019

Just Released: Press Briefing on the Evolution and Future of Homeownership



The New York Fed today held a press briefing on homeownership in the United States, in connection with its release of the 2019 Survey of Consumer Expectations Housing Survey. The briefing opened with remarks from New York Fed President John Williams, who provided commentary on the macroeconomic outlook and summarized the prospects for homeownership. He noted that the labor market remains very strong and that there seems to be little evidence of inflationary pressures, meaning that the economy is on a healthy growth path.

Continue reading "Just Released: Press Briefing on the Evolution and Future of Homeownership" »

Posted by Blog Author at 11:01 AM in Foreclosure, Household Finance, Housing, Mortgages | Permalink | Comments (0)

May 15, 2019

Did Changes in Economic Expectations Foreshadow Swings in the 2018 Elections?



Second of two posts
Did Changes in Economic Expectations Foreshadow Swings in the 2018 Elections?

In the months leading up to the 2018 midterm elections, were economic expectations in congressional districts about to elect a Republican similar to those in districts about to elect a Democrat? How did economic expectations evolve in districts where the party holding the House seat would switch? After examining the persistence of polarization in expectations using voting patterns from the presidential election in our previous post, we explore here how divergence in expectations may have foreshadowed the results of the midterm elections. Using the Survey of Consumer Expectations, we show that economic expectations deteriorated between 2016 and 2018 in districts that switched from Republican to Democratic control compared to districts that remained Republican.

Continue reading "Did Changes in Economic Expectations Foreshadow Swings in the 2018 Elections?" »

May 14, 2019

Just Released: Shifts in Credit Market Participation over Two Decades



Just Released: Shifts in Credit Market Participation over Two Decades

The New York Fed’s Center for Microeconomic Data today released the Quarterly Report on Household Debt and Credit for the first quarter of 2019. Total household debt grew by $124 billion over the quarter, boosted by increases in mortgage, auto, and student loan balances. Over the past twenty years, the prevalence of each type of credit has waxed and waned, shifts linked to the housing boom, the Great Recession, and the subsequent economic recovery. In this blog post, we draw on the New York Fed’s Consumer Credit Panel—a nationally representative sample of Equifax credit report data and the basis of our Quarterly Report—to explore those longer-term trends in credit market participation.

Continue reading "Just Released: Shifts in Credit Market Participation over Two Decades" »

Posted by Blog Author at 11:01 AM in Credit, Household, Household Finance | Permalink | Comments (0)
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