Among closed-end loans, mobile home delinquencies fell from 3.84 percent to 3.63 percent, but home equity loan delinquencies rose from 2.52 percent to 2.68 percent and property improvement loan delinquencies rose from 1.12 percent to 1.19 percent. Among open-end loans, home equity lines of credit delinquencies rose from 1.09 percent to 1.10 percent. The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, was unchanged from the previous quarter at 1.78 percent of all accounts.
“The benefits of a strong job market and rising wages continue to be reflected in relatively low credit delinquencies,” said James Chessen, ABA’s chief economist. “The current economic expansion that has endured for 10 years has provided a solid foundation for consumers who continue to do a good job of managing their finances.”
Chessen added that the “market for home equity loans continues to evolve given the reduced benefits from the tax law change and a slowdown in home price appreciation. Lower mortgage rates should boost demand for housing and help support the market over the next six months or more.”