Offbeat Americans' household debt edges up to $13.21 trillion

18:32  17 may  2018
18:32  17 may  2018 Source:   reuters.com

Goldman: Something strange is happening with the US economy that could cause interest rates to jump

  Goldman: Something strange is happening with the US economy that could cause interest rates to jump <p>America's budget deficit and unemployment rate are heading in opposite directions — something that's never happened during post World War II peacetime and could cause a significant jump in interest rates.</p>Goldman Sachs projects, for instance, that the 10-year Treasury note could be yielding 3.6 percent next year.

The massive debt hangover: U.S. household debt climbs to a record $ 13 .15 trillion . Updated Mar 21, 2018 • 3 min read. One important factor to look at is how Americans are keeping up with their debt payments.

U.S. Producer Prices Edge Up 0.1%. Outstanding household debt rose by 3 billion to $ 13 .15 trillion in the final three months of 2017, completing the fifth straight year overall balances increased, the Federal Reserve Bank of New York said Tuesday.

U.S. household debt grew by $63 billion, or 0.5 percent, to $13.21 trillion in the first quarter, driven largely by the increase in mortgage balances, a New York Federal Reserve quarterly report released Thursday showed.

The amount of mortgage balances rose by $57 billion in the first three months of 2018 to $8.94 trillion. Families, however, paid down their home equity loans, which fell by $8 billion to $436 billion, according to the report.

"Although household debt has been growing for five years, its growth has been slow relative to earlier periods, as mortgage debt has continued to be relatively flat," N.Y. Fed analysts wrote about the report's findings.

It's time to make Congress prove it can curb its out-of-control spending habit

  It's time to make Congress prove it can curb its out-of-control spending habit Just as an overextended family might cut up its credit cards, Congress needs to show that it can finally curb its out-of-control spending habit. And if lawmakers can’t do it with $15 billion in unspent money, then their addiction is even worse than it appears. The simple truth is Washington is bankrupting the country and robbing future generations of Americans. It’s time we changed that. That’s why I think we should make Washington work like the rest of us do.

Student loan debt also plays an outsized role in total American household debt , coming in second behind mortgage debt . As of the second quarter of 2017, student loan debt stood at a whopping .34 trillion , divided By facing up to how much debt you have, you can take the first steps to get rid of it.

The net worth of American households grew last year by .8 trillion , or 14%, to .66 trillion , according to the Federal Reserve. As a percentage of GDP, total debt edged up to 246% from 245%.

Overall tight lending standards have likely contributed to the modest increase in mortgage debt, they said.

Meanwhile, the U.S. housing sector has continued to its recovery since the global credit crisis a decade ago, according to N.Y. Fed analysts.

However, the housing recovery and its impact have been uneven across age groups and between homeowners and renters, they noted.

"In particular, the factors that determine housing wealth are not evenly spread across the population, and those relationships have changed since the pre-financial crisis housing boom," N.Y. Fed's director of research Beverly Hirtle said in prepared remarks on the quarterly report.

CBO: Deficit savings for Trump budget nearly half of White House estimate .
The Congressional Budget Office on Thursday contradicted a White House estimate on President Trump’s budget request for 2019."The federal deficit would be $2.9 trillion smaller under the President's budget than in CBO's baseline during the 2019-2028 period, CBO estimates," the CBO said in a report released Thursday. "By contrast, the Administration estimates that the deficit would be $5.2 trillion smaller than the baseline amount during that period.

—   Share news in the SOC. Networks
This is interesting!