Although most US homeowners are immune from higher mortgage rates because they have fixed-rate mortgages, that’s not true for other types of credit. The delinquency rate on credit card loans is now the same as it was in 2010, a year when the unemployment rate was over 9%. pic.twitter.com/Nu2aobWKeB
— Peter Berezin (@PeterBerezinBCA) June 14, 2024
- Percentage of People in Delinquency:
- Delinquency rates have increased for the last eight to 11 quarters.
- The increase is more notable in the poorest ZIP codes, where delinquency grew from 11% in Q2 2021 to 17.4% in Q1 2024 (a 58% relative increase).
- Overall, the U.S., Eighth District, and poorest 10% of ZIP codes were at 94.8%, 93.7%, and 93.6% of their peaks, respectively, during the examined period.
- Percentage of Debt in Delinquency:
- This statistic describes the incidence on lenders’ balance sheets.
- The percentage of credit card debt in delinquency has increased in every region examined for the last three to seven quarters.
- The richest 10% of ZIP codes experienced the greatest proportional increase, with their delinquency rate climbing from 4.8% in Q2 2022 to 7.4% in Q1 2024 (a 54% relative increase)
Mortgage demand flattens even as interest rates hit the lowest level since March
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