Delinquencies on housing-related loan categories were mixed during the second quarter, according to new data from the American Bankers Association (ABA).
Among the closed-end loan categories tracked by the ABA, home equity line of credit delinquencies fell four basis points to 1.06 percent of all accounts, which market one of the lowest post-recession levels–although it was still above the pre-recession average of 0.53 percent. Home equity loan delinquencies rose seven basis points to 2.75 percent of all accounts, above the pre-recession average of 2.12 percent. Property improvement loan delinquencies rose 10 basis points to 1.29 percent of all accounts, but remain well below the pre-recession average of 1.65 percent. In the open-end loan category, home equity lines of credit delinquencies fell from 1.10 percent to 1.06 percent.
“Maintaining a robust job market and strong income levels will help keep future delinquencies at low levels,” said James Chessen, ABA’s chief economist. “Nearly 15 million jobs have been created over the last six years, which has boosted income and made it easier for consumers to meet their obligations. Consumers are spending in line with their income as they make concerted efforts to increase their savings. This all adds up to a healthy and strong consumer sector.”