Americans Have Quietly Deleveraged. It May Explain the Economy's Resilience. | Barron's

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"Since the global financial crisis, U.S. households and creditors have made significant changes in their attitudes toward borrowing and lending.

For instance, from the end of 2007 (the eve of the global financial crisis) to the end of last year, the stock of U.S. household debt, as a percentage of U.S. gross domestic product, has fallen by a quarter, from 101% to 77% of GDP. Notably, that decline in household indebtedness has occurred despite a prolonged period of very low interest rates, the opposite of what might have been expected.

Partly, that was an understandable response of U.S. households to the massive dislocations in housing, labor, and financial markets during the financial crisis and the ensuing recession. But lending decisions have also been important. Banks and other mortgage lenders tightened credit standards, for example, all-but removing “subprime” from the home-lending lexicon. Adjustable-rate and interest-only mortgages all but disappeared, with borrowers reverting to longer-term fixed rate forms of housing finance. The home-equity loan market scaled back as well."
https://www.barrons.com/articles/americans-have-quietly-deleveraged-it-may-explain-the-economys-resilience-1896f8e0#:~:text=Since%20the%20global%20financial%20crisis%2C%20U,loan%20market%20scaled%20back%20as%20well.