The Wall Street Journal reports on new data released this week by the American Bankers Association, showing that fewer Americans are falling behind on their home loans in today’s healing housing market.
New data on two types of home-equity loans shows delinquency rates have fallen to their lowest levels since 2008. The report defines a delinquency as a late payment that is 30 days or more overdue.
“Home-equity loan and line delinquencies are tracking the slow and steady improvements in the housing market,” said American Bankers Association chief economist James Chessen. “As property values improve, fewer people have negative equity in their homes. Greater household wealth and income gives consumers more breathing room to meet their financial obligations.”
The delinquency rate for fixed-term home-equity loans fell to 3.12% in the first quarter, the lowest rate since December 2008. Still, the rate remains above the 15-year average of 2.75%. The delinquency rate on home-equity lines of credit declined to 1.42% from 1.48% in the fourth quarter. That’s also the lowest level in nearly seven years, but still above the long-term average of 1.12%.
