Fed reported total household debt increased $206 B to $14.56 tln in Q4

Fed reported total household debt increased $206 B to $14.56 tln in Q4, and is up $414 B over the same period last year. Much of the strength coming via mortgage originations, not surprising given the housing sector has been on fire. Mortgage balances are the largest component of household debt, and they climbed $182 B to $10.04 tln at the end of 2020. Mortgage originations (includes refis) rose to a record peak at $1.2 tln in Q4, besting the housing/refi boom from Q3 2003. Concurrently, auto loan originations (includes loans and leases) fell modestly from the Q3 record to $162 B in Q4, but that is still the second highest level on record. Meanwhile, credit card balances rose $12 B in Q4 to $82 B for the year, but that's down $108 B versus the end of 2019. And it is the largest y/y drop since records began in 1999, reflecting the weakness in consumer spending. Consumers were also busy restoring balance sheets and paying down credit cards balances. Auto loans increased $14 B on the quarter and were up $43 B for the year. And student loan debt increased $9 B in Q4 and rose $47 B on the year.