📈 U.S. Household Debt-to-M2 Money Supply Ratio Continues Long-Term Decline

The U.S. household debt-to-M2 money supply ratio declined by one percentage point, from 84.6% in Q1 2024 to 83.6% in Q1 2025. This marks a continued decline from the 2007 peak of 166% during the Global Financial Crisis. By Q1 2025, mortgage debt relative to M2 had dropped 52%, credit card debt by 52%, and auto loans by 31%, while student loan debt rose slightly by 2%. From 2003 to 2024, the overall ratio declined by 37%, reflecting a sustained reduction in household leverage relative to the money supply.