Aggregate household debt balances increased by $206 billion in the fourth quarter of 2020, a 1.4% rise from 2020Q3, andnow stand at $14.56 trillion. Balances are $414 billion higher than at the end of 2019.

Balances

Mortgage balances shown on consumer credit reports surpassed $10 trillion in the 4th quarter, and stood at $10.04 trillion atthe end of December, a $182 billion increase from 2020Q3. Balances on home equity lines of credit (HELOC) saw a $13 billiondecline, the 16th consecutive decrease since 2016Q4, bringing the outstanding balance to $349 billion. Credit card balances increasedin the fourth quarter, by $12 billion, a modest seasonal increase following the sharp $76 billion contraction in the second quarter and$10 billion decrease in the third. Credit card balances are $108 billion lower than they had been atthe end of 2019, the largest yearly

decline seen since the series begins in 1999, consistent with continued weakness in consumer spending as well as paydowns by cardholders. Auto loan balances increased by $14 billion in the fourth quarter. Student loan balances increased by $9 billion. In total, nonhousingbalances increased by $37 billion, but remain $31 billion below the 2019Q4 levels.Originations

New extensions of credit were substantial in 2020Q4, with a record high level of newly originated mortgages and auto loans.Mortgage originations, measured as appearances of new mortgage balances on consumer credit reports and which include refinances,were at $1.2 trillion, surpassing in nominal terms the volumes seen during the historic refinance boom in 2003Q3. Auto loanoriginations, which includes both loans and leases, were down slightly from the record high seen in 2020Q3 but were at the secondhighest level for the series, at $162 billion. In contrast, both HELOC and credit cards saw declines in aggregate credit limits.Aggregate credit limits on credit cards declined by $10 billion, continuing the declines of $31 billion in the third quarter and $53billion during the second. Aggregate credit limits on HELOC accounts declined by $14 billion.