Household Debt Declines Slightly in Q2 2026, Credit Card Delinquencies Remain Elevated
The Federal Reserve Bank of New York has released its quarterly report on household debt and credit for Q2 2026. According to the data, total household debt decreased by $13 billion, or 0.1%, to reach $18.771 trillion.
Mortgage balances led the decline, dropping by $74 billion to $13.117 trillion, but annual mortgage growth remained positive with a $182 billion increase. Mortgage originations held steady at $505 billion newly originated during the quarter.
The serious delinquency rate for mortgage debt stood at 1.52% in Q2 2026 compared to 1.29% in Q2 2025. Home equity lines of credit (HELOC) balances rose by $13 billion to $459 billion, with a $48 billion increase year-over-year.
Credit card balances increased by $21 billion during the quarter to reach $1.263 trillion, marking a $54 billion annual increase. Auto loan balances grew by $28 billion to $1.713 trillion, representing a $58 billion annual expansion.