Consumer loan delinquencies rose for the second straight quarter a result of high unemployment and ongoing challenges in the housing market, the American Bankers Association reports.
Across eight loan categories loan delinquencies increased to 2.88% of all accounts in the three months ending June 30, from 2.71% in the previous quarter, the ABA said Wednesday in its Consumer Credit Delinquency Bulletin.
Home equity loan delinquencies rose to 4.38%, from 4.12%, marking the largest jump in more than a year.
“Lackluster job creation, private sector uncertainty and public sector job cuts have stalled momentum and increased pressure on consumers as the economy struggles to find a way forward,” James Chessen, the Washington-based group’s chief economist, said in a statement.
The unemployment rate was 9.1% in August and has been stuck at 9% or higher for five months. Employers added zero jobs to payrolls in August, down from 85,000 in July, according to the Labor Department.
Still, there were “encouraging trends” in the second quarter in credit card delinquencies, Chessen added, where overdue payments fell by 18 basis points, to 3.22%, to reach the lowest level in a decade.
