US Household Debt Improves as Delinquencies Decline
The share of consumer loans at least 30 days overdue fell to 4.7% in Q2, while student-loan delinquencies improved. However, auto, credit-card, and mortgage delinquencies remain elevated.
Consumer loan performance showed improvement in the second quarter. The share of loans at least 30 days overdue fell to 4.7%, according to the New York Fed. Student-loan newly delinquent balances declined to 7.8%, down from above 10% a year earlier.
However, not all categories improved. Auto and credit-card delinquencies remain elevated, and new mortgage delinquencies hit their highest level since 2015.
The mixed picture suggests some relief for households, but high interest rates and persistent inflation continue to pressure American consumers.
Source: First Squawk