by Calculated Risk on 3/09/2006 02:02:00 PM

The FED Flow of Funds report was released today. It shows that household mortgage debt increased at a record pace in 2005.

On a dollar basis, household mortgage debt increased by a near record $290.6 Billion in the 4th quarter. The last 8 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: $184.5
q2 2005: $277.9
q3 2005: $314.1
q4 2005: $290.6

From Rex Nutting of CBS MarketWatch: U.S. household debt up most in 20 years

U.S. households took on debt at the fastest pace in 20 years in 2005, fueled by a housing boom that boosted their net worth to a record $52.1 trillion, the Federal Reserve said Thursday.

The Fed's quarterly flow of funds report shows the explosion of debt in the U.S. economy continued in 2005, with net savings in the economy falling below 1% of gross domestic product for the first time on record.

Led by a surge in mortgage borrowing, U.S. households' debt increased 11.7% to record $11.5 trillion in 2005, the fastest growth since 1985, the Fed said.

And for the fourth quarter:

In the fourth quarter, total debt in the economy grew at an annual rate of 9.5%, down from 9.6% in the third quarter.

Household debt increased at an 11% pace, down from 12.4% in the third quarter. Mortgage debt increased 13.2%, down from 14.9% in the third quarter. Credit card debt fell 0.7% in the fourth quarter.