New Serious Mortgage Delinquencies Rise as Other US Household Debt Eases
Serious Delinquencies Edge Lower While Mortgage Transitions Rise
According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, with analysis by the National Association of Home Builders (NAHB), US household debt delinquency rates generally eased in Q2, while the share of mortgage balances newly entering serious delinquency increased.
About 4.7% of outstanding household debt balances were in some stage of delinquency, down 0.1 percentage points from Q1. The share of total household debt balances that were seriously delinquent—at least 90 days delinquent—fell to 3.3% from 3.4%.
Serious delinquency rates declined across several consumer loan categories. The rate for auto loans fell to 5.5% from 5.6%, while the share of credit card balances at least 90 days delinquent decreased 0.2 percentage points to 12.9%. Credit cards continued to have the highest serious delinquency rate among the major debt categories.
Mortgage transitions moved in the opposite direction. The share of mortgage balances newly entering serious delinquency increased to 1.52% from 1.48% in Q1, while the stock of seriously delinquent mortgage balances declined during the quarter. Auto loan transitions also edged higher to 3.0%.
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