(Reuters] – The U.S. household’s total debt rose by a record $15.84 trillion in quarter one. This was almost all due to a $250 billion rise in home loan balances. But the increase was not the largest in a single year, and new mortgage and car loan originations fell for the third quarter.

According to Tuesday’s Federal Reserve Bank of New York, mortgage debt now represents 71% of household debt. This is the largest share for nearly a decade.

The lowest amount of new mortgage originations since 2020’s second quarter was $859 billion. These are however still higher than the $100 billion they were in the fourth-quarter of 2019, which was pre-pandemic.

However, 17% of the drop in inflation was still impressive. It was due to a decline in refinancing demand. Borrowing costs rose rapidly during quarter when Fed raised interest rates in an effort to curb inflation.

In addition to falling for the third consecutive quarter, auto loan originations dropped to $177billion. However, this was the highest quarterly level since 2003, when the series began. Auto loan balances increased $11 billion to 1.47 trillion.

Balances on credit cards fell to $841billion from $856billion and student debt rose to $1.59trillion from $1.58 trillion.

Andrew Haughwout from the New York Fed’s Household and Public Policy Research Division stated that “the first quarter 2022 saw an increased in auto and mortgage loan balances, along with typical seasonal declines in credit card balances,”. “However mortgage originations have declined slightly from their 2021 highs, reflecting a decline in demand for refinances.

According to the Mortgage Bankers Association (MBA), the average 30-year fixed-rate mortgage contract rate jumped by 1.5 percentage points over the first three month of this year. The average contract rate on a 30-year fixed-rate mortgage has increased further, now standing at 5.6% as of April. This is the highest level since 2009. MBA’s weekly refinance index is at its lowest level since 2018.

According to the New York Fed, overall delinquencies rates did not change, although the report indicated a slight increase in the number of newly delinquent lenders, those that are behind 30 days or more. This rate increased to 2.12%, from 2.03% in the previous quarter. The highest rate was recorded for auto loans at 5.1%, from 4.96%.

New York Fed researchers reported that overall households were in very good health during a conference call. The household picture is very positive.”