Consumers increasingly fell behind on their payments in several loan categories in the third quarter as economic growth cooled.
Delinquency rates rose for indirect and direct auto loans, loans for mobile homes, closed-end home equity loans, bank cards and personal loans, the American Bankers Association said in its quarterly survey on consumer delinquencies released Tuesday.
Slower growth in new jobs and household income contributed to the uptick in the rate of consumers who are at least 30 days late on loan payments, James Chessen, the ABA's chief economist, said in a news release.
The delinquency rate on indirect auto loans rose to 1.51% in the third quarter from 1.45% in the second quarter. Direct auto loan delinquencies rose to 0.74% from 0.72%. Mobile home delinquencies rose to 3.59% from 3.55%
Delinquencies in auto lending come as consumers are taking on record levels of debt to purchase vehicles. The total amount of consumer auto debt outstanding rose to $1.05 trillion in the third quarter, up from $90 billion a year earlier, according to the New York Fed. That is the highest level of debt in that category since the Fed began collecting the data in 2003.
Much of the rise in auto debt is tied to loans made to borrowers at the low end of the credit spectrum, according to the Fed.
The delinquency rate on closed-end home equity loans rose to 2.91% from 2.9%, the ABA said. However, late payments on open-end home equity loans fell, to 1.31% from 1.34%.
The 30-day delinquency rate on personal loans rose to 1.52% from 1.41%. Bank card delinquencies rose to 2.54% from 2.52%.
The ABA's data is based on a survey of banks nationwide.
The lags in the U.S. economy naturally reversed some of the improvement in delinquency rates seen over the past few quarters, Chessen said.
"A good economy and lower delinquency rates go hand in hand," he said.
Still, delinquency rates remain near historically low levels, he said.