Fitch Ratings estimates the total debt service to income ratio of U.S. households will increase to 11.7% by 2025 from 9.9% in 2022, a relatively modest increase despite recent sharp increases in market interest rates on new household borrowing. “The dominance of the 15-30-year fixed-rate mortgage has played a significant role in blunting the impact of higher rates on aggregate household debt service; however, the sharp increase in credit card rates and the resumption of student loan payments will drive non-mortgage household debt service to historic highs in 2024,” said Olu Sonola, head of U.S. regional economics at ... (full story)