In the final quarter of last year, the past-due rate on home-equity products improved. But overall consumer performance wasn’t so good.
Composite 30-day delinquency on consumer credit was 1.54 percent in the fourth-quarter 2014, three basis points higher than in the previous period.
Consumer delinquency stood modestly lower than a year previous, when the 30-day rate was reported at 1.59 percent.
The American Bankers Association reported the performance metrics.
“Even as incomes rise and the economy improves, consumers continue to take a judicious approach to managing their finances,” said ABA Chief Economist James Chessen in the report. “Consumers have regained confidence since the last recession, but they remain careful about taking on additional debt.”
On home-equity closed-end loans, the 30-day rate declined a basis point from the third quarter to 3.23 percent.
HEL delinquency was 3.48 percent as of the end of 2013.
“Home equity delinquencies are trending in the right direction as the housing market continues its slow march toward recovery,” Chessen said. “As household wealth and income rise, consumers are better positioned to meet their financial obligations.”
The 30-day rate on home-equity lines of credit
improved four BPS to 1.48 percent. The HELOC rate has tumbled from 1.67 percent as of the fourth-quarter 2014.
At 3.60 percent, mobile-home delinquency was four BPS better than the third quarter and
15 BPS less than at the end of 2013.
An 11-basis-point increase left property improvement loan delinquency at 0.93 percent as of year-end 2014.
The rate was 1.07 percent a year earlier.