• Delinquencies see some focus within the NY Fed’s household debt and credit report for Q4.
• Overall delinquency rates rose to 3.1% after bottoming in 2021, but are still 1.6 pp lower than before the pandemic.
• There was however further dispersion by loan type, with credit cards and auto loans becoming increasingly onerous.
• Auto delinquency transition rates have surpassed pre-pandemic levels and are particularly bad for lower-income areas, New York Fed researchers said, adding that borrowers in their 30s are also seeing much faster rates of falling into delinquency on credit card balances.
• The transition into serious delinquency (90+) for credit cards is however particularly elevated compared to pre-pandemic trends – see chart.

Source: New York Fed