Historic High

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What's Happening Today

Good morning! It's Kristin with your daily morning digest.

Households in the U.S. took on a total of more than $1 trillion in debt last year, bringing consumer debt to a total of $15.6 trillion, according to the Federal Reserve's latest report on consumer credit. Credit card balances increased by $52 billion—the largest quarterly increase on record—and borrowers took out over $4.5 trillion in mortgages in 2021, a historic high, as housing prices surged in the U.S.

Stocks are rising this morning as Treasury yields retreat after spiking the last few days. When investors become less interested in bonds, they tend to look elsewhere, usually heading back to equities. Investors will likely be focused on more blockbuster earnings reports from Disney, Uber, and others ahead of tomorrow's inflation data. If inflation continues to run hot, it will further strengthen the Fed's argument that interest rate hikes are needed more often, and more quickly, so markets could respond negatively.

And for those that missed last night's Instagram Live conversation on getting financially ready to purchase a home with Kara Stevens, founder of The Frugal Feminista, you can watch a recording of the discussion here.

- Kristin

Editors' Picks

IRS Will Scrap Facial Recognition Plan After Outcry (The Balance)

Don't Expect Rising Interest Rates To Boost Your Savings Account (The Wall Street Journal)

U.S. Household Debt Increased by $1 Trillion in 2021, the Most Since 2007 (Reuters)

You Can Turn Your Tax Refund Into a Crypto Investment (The Balance)

Broken SALT, Child-Credit Pledges Risk Voter Ire for Democrats (Bloomberg)

Off the Charts

The average rate offered to homebuyers using a conventional 30-year fixed mortgage lingers at 4.11%—its high point since 2020. The average for a 15-year fixed mortgage rose to 3.24% from 3.23% the previous business day, also reaching a fresh high since 2020.

Number of the Day

$118 Billion - That's how much more people borrowed to buy cars last year—the biggest increase for any year since at least 2004—because they've gotten so expensive.

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