The Federal Reserve reports Tuesday that household borrowing rose despite high inflation and rapidly increasing interest rates.

In the first quarter, consumer credit and debt increased 1.7% to $15.84 Trillion. This was primarily due to a 250 billion rise in mortgage debt which is now at $11.18 trillion. That’s an increase of 10% over the first quarter 2021.

While credit card balances fell by $15 billion during this three-month period, they remained $71 Billion, which is about 9% higher than the previous year. After what New York Fed called “a historically brisk 2020”, in which prices for used vehicles rose nearly 27%, auto loan originations dropped in the quarter.

The first quarter saw student loan debt rise by $14 billion, which brings the total annual growth to 6.5%.

All of this is accompanied by an acceleration in the rate at which debt grows. consumer price inflation up 8.5%Interest rates have risen to new multi-year highs, with the March quarter spanning over a year. According to Freddie Mac: The 30-year interest rate on mortgages now stands at 5%, compared to 3% a few years ago.

The mortgages account for 71% of household debt. This number has risen steadily.

The New York Fed reports that $8.4 trillion worth of new mortgage debt has been originated by households since the Covid pandemic. This is due to a shift in housing from cities into suburbs. It also coincides with an increase in property prices. According to Census data, the median home value has increased 30% in two years, to $428,000.

New York Fed said that it seems that the boom in refinance that was associated with low mortgage rates has waned as rates rise.

In an effort to reduce inflation’s rise, the Fed has authorized two rate increases in this year. They are expected to authorize a number of more hikes throughout the year.