As a reflection of a stronger housing market and improving economy, fewer Americans are falling behind on their home loans according to the American Bankers Association. Newly available data on two types of home equity loans indicate that delinquency rates have dropped to their lowest levels since two thousand and eight. The report defines a delinquency as a late payment that is thirty days or more overdue. While falling delinquency rates are good news, they remain above historic norms.
As reported in the Wall Street Journal, the delinquency rate for fixed term home equity loans fell to three point one percent during the first quarter of twenty fifteen, the lowest rate since December two thousand and eight. But that rate of delinquency still remains above the fifteen-year average of two point eight percent. The ongoing improvement in timely payment of home loans is consistent with falling delinquency rates on other types of bank loans.
Following the deep recession that began roughly seven and a half years ago, Americans have become more cautious about taking on too much debt and many families have worked hard to pay down balances. Moreover, qualifying for loans is more challenging than it was pre-recession.
