(NewsNation) — Household borrowing is at a record high of $15.84 trillion, according to a new report from the Federal Reserve.
But where is all this money going? The largest part is tied to mortgage debt: $11.8 trillion.
Rising interest rates have taken a toll on mortgage originations — which dropped from the historically high volumes we’ve been seeing. The Federal Reserve says this indicates a drop in demand for refinances.
This is the full breakdown:
- Student debt: $1.59 trillion
- Auto debt: $1.49 trillion
- Credit card debt: $840 billion
- Home equity line of credit: $320 billion
- Other: $50 billion
There has been a push by the Biden administration to forgive some student debt, with multiple sources telling The Hill Biden is considering expunging at least $10,000 per borrower. Under the Biden administration, roughly $17 billion in federal student loan debt has been canceled for some 725,000 borrowers.
The Federal Reserve report, which is a quarterly check on the health of the country’s credit consideration and consumer activity, also showed that consumer prices jumped 8.3% last month. While still high, inflation is still below the 8.5% year-over-year surge in March, which was the highest rate since 1981.
The Associated Press contributed to this report.