by Calculated Risk on 6/08/2006 01:46:00 PM

The FED Flow of Funds report was released today. It shows that household mortgage debt increased significantly in Q1 2006.

On a dollar basis, household mortgage debt increased by $260.7 Billion in the 1st quarter. The last 9 quarters (billions increase in household mortgages, Includes loans made under home equity lines of credit):

q1 2004: $190.4
q2 2004: $211.1
q3 2004: $277.1
q4 2004: $232.9
q1 2005: $189.9
q2 2005: $280.2
q3 2005: $314.8
q4 2005: $293.5
q1 2006: $260.7

From Reuters on debt increase: US household wealth rose in first quarter

'... the Fed said borrowing outside the financial sector soared at an annual rate of 11 percent in the first quarter, faster than the fourth quarter's 9.4 percent pace.

It was the fastest rate of growth in nonfinancial debt since an 11.9 percent rate in the fourth quarter of 1986, the Fed said.

Growth in nonfinancial debt was propelled by an annualized 12.9 percent rise in federal debt, up from a 7.8 percent increase in borrowing in the previous quarter. It was the highest rate of growth in federal debt since the first quarter of 2005.

Household borrowing gained at an 11.6 percent annual pace, up from 11.1 percent in the fourth quarter.

Business debt grew by a 10.4 percent annual rate, up from 8.3 percent at the end of 2005. Borrowing at the state and local government level slowed to a rise of 5.8 percent from 8.6 percent the previous quarter.'