U.S. consumer credit grew at a slower pace in the second quarter of 2026, according to an Aug. 17 NAHB Eye on Housing analysis by economist Onnah Dereski of Federal Reserve G.19 consumer credit data. Total outstanding consumer credit reached $5.17 trillion in the quarter, up 2.60% at a seasonally adjusted annual rate from the first quarter and 2.43% higher than a year earlier — a deceleration from prior quarters’ growth pace.
The report splits credit into two categories. Nonrevolving credit, which includes student loans and auto loans, reached $3.82 trillion seasonally adjusted, up 2.11% at a seasonally adjusted annual rate from the prior quarter and 1.96% year over year. Within that category, student loan balances stood at $1.86 trillion, up 3.08% annually, while auto loan balances reached $1.57 trillion but grew just 0.69% year over year as average auto loan rates fell 53 basis points to 7.14%.
Revolving credit — primarily credit cards — told a different story. Balances rose to $1.35 trillion seasonally adjusted, up 3.98% at a seasonally adjusted annual rate and 3.79% year over year, even as the average credit card interest rate dipped 22 basis points to 20.94%. Revolving credit grew nearly twice as fast as nonrevolving credit on both a quarterly and annual basis, extending a pattern of households leaning more heavily on cards even as rates on that debt remain far above other borrowing costs.
The divergence lines up with other recent data on how households are managing costs. RealtyWire reported this month that HELOC balances rose $13 billion nationwide in the second quarter as homeowners tapped equity rather than refinance out of low fixed mortgage rates, but many households without home equity to draw on have leaned on credit cards instead — debt that, at nearly 21% average interest, is far costlier than either a HELOC or a mortgage. Buying a home remains a stretch for many of those same households: RealtyWire has also reported that the income needed to afford a typical U.S. home has held near a record $110,000 in recent Redfin data.
What it means: The NAHB analysis does not itself draw a direct line between consumer credit trends and housing markets, but the pattern is consistent with a household sector managing tighter budgets: auto and student debt growth is cooling while credit card balances — often used to cover near-term expenses — keep climbing faster than income. For prospective homebuyers, rising revolving debt at 20%-plus interest rates works against mortgage-qualification math even when overall borrowing costs elsewhere are easing, since lenders weigh total monthly debt obligations, including credit card minimums, against income.
What to watch: The Federal Reserve’s G.19 report is issued monthly and its second-quarter figures will be followed by July and August data in the coming weeks; a continued acceleration in revolving balances alongside slowing income growth would be a signal worth tracking for its effect on mortgage-qualification rates and housing demand.
