While quarterly delinquency was lower for closed-end home-equity loans, late payments on home-equity lines of credit, mobile-home loans and property improvement loans were all higher.
The level of past-due payments on closed-end HELs was 4.12 percent in the second quarter. The rate reflects loans that were at least 30 days past due.
HEL delinquency tumbled from 4.38 percent three months earlier. There was no difference, however, in the HEL rate from a year earlier.
The American Bankers Association reported the delinquency data Wednesday in its Consumer Credit Delinquency Bulletin.
But HELOCs saw an increase, to 1.91 percent from the first quarter’s 1.80 percent and from 1.81 percent during the same period last year.
ABA reported that mobile-home delinquency climbed to 3.74 percent from 3.62 percent in the previous quarter. During the second-quarter 2010, the rate was 3.65 percent.
On property improvement loans, the rate rose to 1.07 percent from 1.02 percent in the first quarter. But this category has shown improved performance from a year prior, when the rate was 1.40 percent.
“There will be continued challenges for housing, which has been a persistent drag on economic growth,” ABA Chief Economist James Chessen said in the report. “Real estate prices continue to fall, and home loans face increased pressure as unemployment continues to take its toll on borrowers.”
Out of a total of 11 categories tracked by the trade group, delinquency was higher in nine of them. ABA attributed to deterioration to “weak job creation and a slowing economy.” Also blamed were high gas prices, though this metric has shown improvement since June.
The composite ratio, which reflects delinquency in eight closed-end categories, was up 17 basis points from the first quarter to 2.88 percent. But a 12-basis-point decline was observed by the association from the same point last year.
Chessen predicts no near-term changes in delinquency.