Consumer credit improves in the first quarter

Consumers’ non-real-estate indebtedness now stands at $2.29 trillion, 9.6 percent below its fourth-quarter 2008 peak. 

Mortgage originations increased for the third straight quarter to $499 billion, 65 percent more than their low at the end of 2008, the report showed.

Also, the report showed that new foreclosures and bankruptcies declined last quarter, and the total amount of delinquent balances dropped 15 percent from the same time last year. 

Delinquency rates were down for the fifth straight quarter, with 10.5 percent of outstanding debt in “some stage of delinquency,” down from 10.8 percent on Dec. 31, the report said. That’s down from 11.9 percent a year earlier.

A separate report on Friday showed that consumers increased use of their credit cards in March as total borrowing jumped by $6 billion, more than expected and the sixth straight monthly gain. 

The Federal Reserve said credit card use rose for only the second time since August 2008, the first time in four months, as revolving debt increased $1.9 billion in March. 

Non-revolving debt, including educational loans and loans for autos and mobile homes, rose $4.1 billion for the month. The Fed’s report doesn’t track debt secured by real estate, such as home equity lines of credit.

Consumers also borrowed more to finance car loans for the eighth straight month.