Home equity loan delinquencies fell from 2.50 percent in the second quarter of last year to 2.42 percent in the third quarter, while mobile home delinquencies fell from 5.08 percent to 4.97 percent. However, property improvement loan delinquencies rose from 0.95 percent to 1.08 percent while home equity lines of credit delinquencies rose from 1.07 percent to 1.08 percent.
Overall, delinquencies fell in five and increased in five of the 11 individual consumer loan categories tracked by ABA, with the delinquency rate for indirect auto loans remaining unchanged. The composite ratio, based on the delinquencies in eight closed-end installment loan categories, rose 12 basis points to 1.68 percent of all accounts.
“Delinquencies remained remarkably low for this late in the economic cycle,” said James Chessen, ABA’s Chief Economist. “The very modest increase in closed end loan delinquencies reflects a slow movement back toward more normal levels. Jobs remain plentiful and incomes continue to rise, which has helped boost consumer confidence. The bottom line is that consumers are feeling comfortable with their finances and have a proven record of successfully meeting their financial obligations over the last several years.”