MNI BRIEF: US Delinquency Rates Remained Elevated In 2Q-NY Fed

MNI (WASHINGTON) - U.S. delinquency transition rates for credit cards, auto loans and mortgages remained elevated and increased little in the second quarter, the New York Fed said in a report Tuesday. Overall consumer debt is overwhelmingly high quality and bankruptcies and foreclosures are low compared to historical values, meaning consumers are still in a decent place, Fed bank researchers told reporters. (See: MNI INTERVIEW: Fed To Cut Gradually If Growth Solid - Giannoni) 

Home equity lines of credit after having declined steadily in the post-financial crisis period through 2021 began increasing in 2022 and has grown about 20% since. However it's unclear if the trend will continue and will depend on the direction of home prices, the researchers said.