Consumers Can Handle Fed Tightening: Their Debts, Delinquencies, Foreclosures, Collections, and Bankruptcies | Wolf Street

But now, it’s over. It’s the next morning and bad breath: The worst CPI inflation in 40 years, spiking interest rates to deal with this inflation, and deflating asset bubbles. The hot air is already hissing out of stocks, bonds, and cryptos; and housing, which is very slow moving, is getting in line.

Total mortgage balances jumped by 10% year-over-year in Q1, to $11.2 trillion, even as home sales declined 3.6%:

The number of homeowners still in forbearance dropped to just 525,000 by mid-April, from 4.3 million at the peak in June 2020, according to the Mortgage Bankers Association. So that issue went away with the explosion in home prices.

Balances of auto loans rose 6.4% year-over-year to $1.47 trillion in Q1, on much higher vehicle prices and lower volume:

Consumers Can Handle Fed Tightening: Their Debts, Delinquencies, Foreclosures, Collections, and Bankruptcies | Wolf Street