Delinquency Rates on Loans and Leases at Commercial Banks are spiking!
Source: https://www.federalreserve.gov/releases/chargeoff/delallsa.htm
Credit Cards:
All Consumer Loans:
Delinquency Rate on All Loans, All Commercial Banks:
On the consumer side, this lines up with the Survey of Consumer Expectations: U.S. households probability of being able to come up with $2,000 if an unexpected need arose within the next month falling to its lowest level since 2013.
- Credit Demand and Application Rates (2023):
- Overall decline in consumer credit demand.
- Decreased application rates for most credit types; increase for credit card limit increases.
- Notable drop in mortgage loan applications to 4.3%.
- Rejection Rates and Creditworthiness:
- Rise in rejection rates for credit cards, auto loans, and mortgage refinancing.
- Decrease in rejection rates for new mortgage applications and credit card limit extensions.
- Applicants for new mortgages in 2023 showed higher creditworthiness.
- Future Credit Application Expectations:
- Decreased likelihood of applying for new credit cards, auto loans, and mortgages in the next 12 months.
- Increased perceived likelihood of future credit application rejections for all loan types.
- Financial Fragility of U.S. Households:
- Decreased probability of raising $2,000 for unexpected needs, the lowest since 2013.
- Voluntary and Involuntary Account Closures:
- Rise in lender-initiated account closures for any type of credit in 2023.
- It's a good thing GameStop has Apes holding down the balance sheet in an economy facing headwinds!
TLDRS
- Delinquency Rates on Loans and Leases at Commercial Banks are spiking!
- Credit Card delinquencies up!
- All consumer loan deliquesces are up!
- Delinquency Rate on All Loans, All Commercial Banks is up!
- It's a good thing GameStop has Apes holding down the balance sheet in an economy facing headwinds!
