U.S. household delinquencies improve: NY Fed quarterly report
(Bloomberg) — The share of overdue consumer loans fell slightly in the second quarter, and so did some measures of newly delinquent debt, pointing to improvements for the U.S. consumer.
The total balance of loans delinquent at least 30 days declined to 4.7%, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit released Tuesday.
“Delinquency rates across most products have held steady over the past two years” Joelle Scally, economic policy adviser at the New York Fed, said in a press release. “Still, new delinquencies for auto loans and credit cards remain at elevated levels, a trend we’ll continue to monitor.”
Student loans delinquencies showed some signs of improvement after the end of a years-long payment freeze sent defaults soaring. The share of loans recently delinquent at least 30 days was down to 7.8% last quarter after remaining above 10% for a year. However, new delinquencies rose for mortgages, now at the highest since 2015.
Meanwhile transition into serious delinquencies — loans recently overdue more than 90 days — edged down for credit cards, but increased for some other types.
Overall, the data underscores the challenges still facing households, as inflation remains above the US central bank’s goal and interest rates stay high. The Federal Reserve left its benchmark rate unchanged last month, but a growing chorus of officials argue it’s time to raise them.
Stable credit cards
In a blog accompanying the report, New York Fed researchers found that the pace of credit-card delinquency is elevated but has remained largely stable since 2024. Yet, total shares of balances overdue have risen as lenders are actively reporting charged-off balances more than they used to.
“The stock delinquency rate is rising because of a pool of stale, charged-off debts that lenders have been reporting for longer durations, rather than a fundamental worsening in the incidence of delinquency,” the researchers wrote.
Policymakers have said they’re concerned about consumers’ pessimism around the economy, though recent surveys show sentiment has improved as gasoline prices fell from their peaks earlier in the year.
In a separate report from the New York Fed last week, perceived chances of missing a minimum payment in the next three months rose across respondents, especially those with annual incomes below $50,000.
A shift in mortgage services lead mortgage debt balances to fall in the three months ended in June, which drove total household debt down for the first time since 2020, to $18.8 trillion. But NY Fed researchers expect mortgage balances to bounce back in their next report as lenders go back to reporting accounts.
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Last modified: August 11, 2026
