Home equity loan delinquencies set a new high to 4.3 percent in the American Bankers Association’s third-quarter report on consumer loans that are late by 30 days or more.
The home equity delinquency rate, up 29 basis points from the previous quarter, is a sign of the persistent housing market troubles and unabated foreclosure crisis.
But only two of eight loan categories registered increases in the third quarter, the ABA reported.
Most categories declined, suggesting a possible peaking of consumer loan troubles. The ABA’s composite ratio of late consumer credit fell 12 basis points to 3.23 percent of all accounts, compared to 3.35 in the previous quarter.
Bank card delinquencies fell 24 basis points to 4.77 percent, while personal loan delinquencies fell from 3.90 percent to 3.74 percent.
Auto loans showed continued improvement, with direct loans falling nearly half a point to 2.04 percent, and “indirect auto loans,” those arranged through auto dealers, dropped to 3.15 percent for the third quarter.
However, all delinquencies remain at high levels and the home equity loan rate is a concern, the ABA said.
“It’s always a good sign when delinquencies decline, but they’re still relatively high,” said ABA Chief Economist James Chessen. “Until the economy generates more jobs and the housing sector stabilizes, they’re likely to stay that way.”
The other increase was in mobile home loans, which increased to 3.63 percent from 3.53 percent in the previous quarter.
