GO
Loading...

Home Equity Credit Line Delinquencies at New High

Late payments on U.S. home equity lines of credit rose to a 21-year high in the first quarter of 2008 due to continued stress in the housing market and general weakness in the economy, the American Bankers Association said Wednesday.

In its quarterly report on consumer borrowing, the bankers group said the percentage of home equity lines that were more than 30 days past due rose to 1.1 percent from 0.96 percent the prior quarter.

That rate is the highest since the ABA started collecting the data in 1987.

"It was a tough quarter for some people," said ABA chief economist James Chessen in a statement. "Faced with rising food and gas prices and little income growth, fewer resources have been available to manage debt."

Bank card delinquencies also rose in the first quarter to 4.51 percent, which is slightly above the five-year average delinquency rate of 4.4 percent for the category.

Other delinquency categories showed improvement.

Indirect auto loan delinquencies fell to 3.09 percent during the first quarter from 3.13 percent the prior quarter. Property improvement loan delinquencies fell to 1.78 percent from 1.81 percent.

But Chessen said delinquencies will remain elevated in the near future.

"The tax stimulus is helping to boost personal income, but persistently high gas and food prices will eat away at overall resources," he said.

Contact Real Estate

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription
    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.
  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

Home prices and supply map

  • Track the latest moves in sales, prices and inventory in some of the largest housing markets across the country.

Latest Special Reports

  • In this ever increasing volatile world only leaders who can manage fast change can survive and prosper.

  • Famous founders reveal their secrets on how to build an iconic company—and change the world in the process.

  • Inside the market's biggest sectors with a look at the trends, companies and trades netting profits for investors.