by Dr. Mark Dotzour Chief Economist and Director of Research
Federal Reserve data indicate that the credit health of Americans is improving in several categories. The delinquency rate on consumer loans is falling nicely. Business loan delinquency is declining in a similar fashion.
However, high delinquency rates still burden real estate loans.
First, the good news. Consumer loan delinquency dropped 37 percent in the past year from a peak of $59.8 billion on Jan. 1, 2010, to $37.6 billion in July 2011 (the most recent numbers posted). Another $10 to $15 billion of troubled consumer loans have to be resolved to get back to previous norms, but the trajectory of recovery is fast.
Read more...Loan Delinquencies Show Moderation (except for real estate loans)- The Blog of the Real Estate Center | Real Estate Center at Texas A&M University