While homeowners had more trouble making mortgage payments during the third quarter of 2007, credit-card delinquencies actually fell, as consumers moved to preserve their ability to buy necessities like groceries and gasoline, a report from the American Bankers Association suggests.

Late payments on credit cards during the third quarter fell 21 basis points, to 4.18 percent, the ABA said. Modest income and job growth helped credit-card repayment rates improve even as mortgage repayments worsened, said ABA Chief Economist James Chessen.

“Consumers facing mortgage resets may be under financial pressure, but they still want to keep up with other payments,” Chessen said in a statement. “They still need to heat their homes, put food on the table, and fill their cars with gas.”

The Mortgage Bankers Association last month reported that the delinquency rate on mortgage loans rose 47 basis points from the previous quarter, to 5.59 percent, the highest rate since 1986. The delinquency rate on subprime loans was nearly three times higher — 16.31 percent, an increase of 149 basis points.

The ABA’s latest Consumer Credit Delinquency Bulletin showed the delinquency rate on a composite of eight loan categories jumped 17 basis points, to 2.44 percent — the highest level since the second quarter of 2001. The loan categories tracked in the composite include direct auto, indirect auto, personal, closed-end home equity, home improvement, recreational vehicle, mobile home and marine loans.

The ABA bulletin showed home-equity-loan delinquencies increasing to 2.28 percent from 1.99 percent, while delinquencies for home-equity lines of credit rose a more modest 7 basis points to 0.84 percent. Property-improvement-loan delinquencies increased to 1.6 percent, up from 1.46 percent during the second quarter, while mobile-home-loan delinquencies increased 26 basis points to 2.87 percent.

Chessen said delinquency rates on loans directly related to the housing market are expected to continue to rise in the fourth quarter of 2007, reflecting continued weakness in the housing sector.

***

Send tips or a Letter to the Editor to matt@inman.com, or call (510) 658-9252, ext. 150.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription