(Fixes the second year’s data to the report from 2000, starting at the fourth paragraph.

By Jonnelle Marte

(Reuters) – The United States’ consumer debt increased at an unprecedented rate in the past 14 years, as consumers borrowed more money to buy homes, cars, and other items that have become increasingly costly, according to a Tuesday report by the New York Federal Reserve.

The New York Fed’s Quarterly Report on Household Debt and Credit shows that total household debt rose by $1 trillion over the past year. This is the biggest increase in debt since 2007. Today’s total debt amount is $1.4 trillion greater than the level at the beginning of 2019.

Wilbert van Der Klaauw was senior vice president of the New York Fed and stated that in his statement, “the total balances on newly opened auto and mortgage loans dramatically increased in 2021.”

More than $4.5 Trillion in mortgages was originated in 2021. It is an historic record in the database that dates back to 1999. In the fourth quarter, mortgage balances rose by $258 billion to $10.93 trillion as of December.

According to New York Fed researchers, auto loan originations have returned to pre-pandemic levels but the loan amount has increased due to rising vehicle prices. In a blog article published Tuesday, researchers said that car prices have skyrocketed and buyers have borrowed higher to pay for it.

As a sign consumers are returning their spending behavior pre-pandemic, credit card balances rose by $52 Billion in the fourth quarter. Although this was the most significant quarterly growth in history of data, credit card balances still stand at $71 billion less than at the end 2019.

Researchers found that credit card usage tends to rise in the fourth quarter due to holiday shopping. However, the increased use could also be due higher prices of goods and services.

Research found that households have been able so far to handle the greater debt loads. Delinquencies still remain low thanks to some savings from the forbearance program and the pandemic. New York Fed researchers stated that it is important to monitor how borrowers perform after returning to student loan debt repayments in the next few months.