Household Spending Seen Staying Strong Despite End of Loan Payment Pause

Household budgets are in good shape to keep spending due to home refinancing during pandemic and excess savings.

End of student loan payment pause may not reduce spending much as borrowers expect to cut only $56/month on average.

Homeowners who refinanced mortgages during pandemic pocketed $400 billion total.

Consumers expect to increase spending by 5.3% over next year, well above pre-pandemic levels.

Some borrowers are under stress, with delinquencies rising for credit cards and auto loans.