“Delinquency transition rates were mostly steady, while student loan delinquencies are returning to pre-pandemic levels.”
The delinquency picture on the mortgage side remains relatively benign for brokers to communicate to cautious clients. Transitions into early mortgage delinquency actually ticked down slightly, from 3.9% to 3.8% on an annualized basis.
Serious mortgage delinquency did edge up marginally, from 1.4% to 1.5%, but the overall mortgage delinquency rate hovers around 1%, a figure that stands in stark contrast to the low double-digit delinquency rates now seen in credit cards and student loans.
Rossman underscored the divergence: “Mortgage delinquencies are very low, around 1%. Credit card and student loan delinquencies — both in the low double digits — are the biggest trouble spots.”
The New York Fed’s report also noted that aggregate credit card limits rose by $60 billion in Q1, and auto loan balances increased $18 billion to $1.69 trillion. It reinforces how well-behaved the mortgage segment looks by comparison.
