Economics
U.S. Household Debt Rises To Record as Refinances Surge
- Record-low rates helped fuel pickup in consumer borrowing
- Consumers with high credit scores most likely to get credit
Photographer: Roger Kisby/Bloomberg
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U.S. household debt rose slightly in the third quarter, reaching the highest level ever as record-low interest rates continue to fuel a surge in home loan borrowing among consumers with excellent credit.
Total debt increased 0.6% to $14.35 trillion from $14.27 trillion in the second quarter, the Federal Reserve Bank of New York said in a report published Tuesday. The gain was led by a surge in new mortgage loans, mostly refinancings, which reached $1.05 trillion, the second highest in data going back to 2003 and rivaling the historic refinance boom 17 years ago.