On Friday, Econintersect reported that for the first time in two years – consumer credit expanded almost immeasurably (analysis here). Now more detailed analysis provided by the NY Federal Reserve for 1Q2011 shows:
Per-capita consumer debt in the United States essentially held steady in the first quarter, ending a string of nine consecutive quarters of decline.
Behind the leveling off of total consumer debt was a small increase in mortgage balances shown on consumer credit reports. In spite of the small increase, household mortgage indebtedness and home equity lines of credit (HELOCs) are now 8.1% and 9.9%, espectively, below their peaks. Consumer indebtedness excluding mortgage and HELOC balances fell slightly ($30 billion or about 1%) in the quarter. Consumers’ non-real estate indebtedness now stands at $2.29 trillion, 9.6% below its 2008Q4 peak.
Overall, from a delinquency point of view, the percentage of consumers current is improving.
Total household delinquency rates declined for the fifth consecutive quarter in 2011Q1. As of March 31, 10.5% of outstanding debt was in some stage of delinquency, compared to 10.8% on December 31, 2010 and 11.9% a year ago. About $1.2 trillion of consumer debt remains delinquent and $890 billion is seriously delinquent (at least 90 days late or “severely derogatory”). Compared to a year ago, both delinquent and seriously delinquent balances have fallen 15%.
About 368,000 individuals had a foreclosure notation added to their credit reports between December 31 and March 31, a 17.7% decrease from the 2010Q4 level of new foreclosures. New bankruptcies noted on credit reports fell 13.3% during the quarter, from 500,000 to 434,000. New bankruptcies in 2011Q1 were 6.4% below their levels of 2010Q1.
Consumer Credit Increases For First Time Since February 2009 by Steven Hansen
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