MNI BRIEF: Auto, Credit Card Delinquencies High, Stable-NY Fed

U.S. consumers are facing high but stable delinquency rates in auto and credit card loans, according to a new report from the New York Fed. 

“Credit card and auto loan delinquencies are elevated but it looks to us like they have stabilized. When you look at the monthly data it looks like it might be turning around a bit but we have to see how that evolves,” New York Fed researchers said.  

“Overall, household balance sheets in the aggregate look pretty good, pretty strong, but there are segments of the population where we are seeing stress.”

Total household debt rose USD197 billion, or 1%, to USD18.59 trillion in the third quarter.

“Household debt balances are growing at a moderate pace, with delinquency rates stabilizing,” said Donghoon Lee, economic research advisor at the New York Fed in a statement. “The relatively low mortgage delinquency rates reflect the housing market’s resilience, driven by ample home equity and tight underwriting standards.”