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Posted by: thepinetree on 04/11/2024 08:44 PM
Updated by: thepinetree on 04/11/2024 08:44 PM
Expires: 01/01/2029 12:00 AM
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Credit Card Delinquencies Reach All Time Highs in Latest Fed Report
Philadelphia, PA...Nominal credit card balances moved up in the fourth quarter of 2023, establishing a new series high. Card utilization also rose, as is typical at year-end, and consumers with stretched credit lines drew further on those lines. Credit limits increased for more consumers than in the third quarter, especially for those with already-high credit limits.
Fourth quarter 2023 featured the worst card performance in the series. All stages of account-based delinquency reached series highs. Only the 90+ balance-based rate was under its series high, set over a decade ago. As credit performance deteriorated, the median origination credit limit decreased for a second consecutive quarter.
Mortgage originations were the lowest in the series. Originated mortgages hint at a possible change in the risk approach of firms. While credit scores remain steady, median original front-end debt-to-income and loan-to-value are elevated compared with fourth quarter 2021 levels. There was a slight quarter-over-quarter increase in the 30+ days past due rate, but delinquencies are near series lows and well below pre-pandemic levels.
Credit Card Real Balances and Utilization Approaching Pre-Pandemic Figures
Nominal credit card account balances, which surpassed series highs for the 50th, 75th, and 90th percentiles in the third quarter of 2023, continued to grow in the fourth quarter of 2023. Nominal account balances, however, have increased in the fourth quarter every year in the data because of seasonal factors. When adjusted using the U.S. consumer price index, real account balances remained below the percentile levels reported in the fourth quarter of 2019. Real account balances are quickly approaching pre-pandemic heights, though, with the median real account balance increasing 5.4 percent year over year. Correspondingly, the 50th and 75th percentiles of card utilization rose 35 basis points and 375 basis points year over year and were 31 and 57 basis points shy of where they were at the end of 2019, respectively. The 90th percentile utilization rate is at a series high.
Credit Card Performance Worsened to Historical Levels
Credit card performance further deteriorated at the end of 2023, with firms recording the worst 30+, 60+, and 90+ account-based days past due levels in the reporting series. Notably, card performance usually declines in the fourth quarter. Stress among cardholders was further underscored in payment behavior, as the share of accounts making minimum payments rose 34 basis points to a series high from last quarter’s reading. The share of accounts making full balance payments did tick up 8 basis points in the fourth quarter, but the 3.1 percent increase in revolving balances implies higher card balances among a smaller group of revolvers. Median origination credit scores jumped 2 points, supporting data from the Senior Loan Officer Opinion Survey that suggest that credit card lending standards at most large banks tightened somewhat or remained unchanged in the fourth quarter of 2023. However, current credit scores at the 10th and 25th percentiles of cardholders decreased to their lowest levels since the first quarter of 2020, indicating further performance deterioration could be on the horizon.
New Mortgages Exhibit Riskier Characteristics as Affordability Issues Persist
Originations declined to a series low in the fourth quarter of 2023 as market headwinds continued to stifle overall mortgage demand. Year-end data highlighted shifts in large bank underwriting practices, largely related to rising housing costs. Origination credit scores remain at or near levels observed in the fourth quarter of 2021. However, the median front-end debt-to-income (DTI) ratio rose to a series high and sits 500 basis points above its fourth quarter 2021 level. Median origination loan size and loan-to-value (LTV) have increased 9.3 percent and 900 basis points, respectively, over the same time period. Combined, the increases underscore continued affordability issues as housing costs consume a larger share of borrowers’ budgets. This indication coincides with the Atlanta Fed’s report that home affordability has drastically worsened since the end of 2021.
- Disclaimer: The views expressed in this report are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Philadelphia or the Federal Reserve System.
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No Subject
Posted on: 2024-04-12 07:30:21
By: Anonymous
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Hey dotards: see the big drop in 2020?
That was all the free government stimulus money flowing into your businesses and pockets to keep your poor asses from starving.
See how the graph skyrockets in 2021, 2022 and 2023; that's the inflation payback.
No free lunch dotards, that's how life works.
So stop crying about inflation, you took the money...
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Re:
Posted on: 2024-04-12 07:33:24
By: Anonymous
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I would of swore democrats enjoy spending there free money too.
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Re: credit card debt
Posted on: 2024-04-12 08:37:01
By: Anonymous
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73% of credit card debt holders vote Republicans.
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Re: credit card debt
Posted on: 2024-04-12 08:40:02
By: Anonymous
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^^ You're full of SHI*
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Re: credit card debt
Posted on: 2024-04-12 10:19:16
By: Anonymous
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Full of sh it.
Only in the morning.
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Re: credit card debt
Posted on: 2024-04-12 10:37:59
By: Anonymous
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Yeah, afterwards his diaper is full just like Biden's.
Get real you dumb phuck/ feloncrats Joe's numbers are falling faster then Anti's panties when he sees a male dog. It's all because Joe's screwed up our economy, our National Security, started two wars thru his weakness, weaponized our justice system against anyone who speaks out against him
Everything he's done has been disastrous. Keep believing everything you hear from Biden and the legacy news and don't use your computer or your tiny little brain to search the news. That's why you're called Dumbacrats.
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Re: credit card debt
Posted on: 2024-04-13 07:29:07
By: Anonymous
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^^Hey!! You're the one that loves Trump the Dawg!!^^
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Re: credit card debt
Posted on: 2024-04-13 07:43:04
By: Anonymous
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Getting a credit card became very easy back in the early days of de-regulation. Triggered by.......wait for it................A REPUBLICAN PRESIDENT!! Yes, one Ronald Reagan ushered in our new age of consumer debt by deregulating the credit industry.
For the benefit of..................wait for it...................BIG BUSINESS!!!
How's all that debt working out for our country??
Thanks Reagan, the Republican Party, and what they stand for.
Now we are expected to believe Adolph Trump will lead us out of the darkness???????????????????????????????
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No Subject
Posted on: 2024-04-12 07:30:36
By: Anonymous
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Yup! Bidenomic's definitely is Working.
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Re:
Posted on: 2024-04-12 07:35:38
By: Anonymous
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Joe when the next round of checks going out since you're into vote buying.
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Re:
Posted on: 2024-04-12 08:01:47
By: Anonymous
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Joe stick that 30 dollar Tri Tip up Sniveler's ass.
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Re:
Posted on: 2024-04-12 08:17:15
By: Anonymous
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Cancelling student loans was a campaign promise. Promise kept!
Tell me, did trump ever get around to building that wall?
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Re:
Posted on: 2024-04-12 10:43:44
By: Anonymous
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Yes Trump did, and states like CA did everything to stop him. That's why we Billions of Dollars in Debt dumbass, and it's more expensive every year.
"Mass illegal immigration and misguided state policies that provide illegal alien with benefits and services now cost California's shrinking tax base nearly $31 billion a year, according to a newly-released cost analysis by the Federation for American Immigration Reform (FAIR)."
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No Subject
Posted on: 2024-04-12 08:05:12
By: Anonymous
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Joe's going to debate Trump. Hahahahahahahahah Hohohohohohohoho Hehehehehehehehehe
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Re:
Posted on: 2024-04-12 08:58:03
By: Anonymous
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Trump is going to debate the judge on Monday.
HAHAHAHAHAHAHA.....
HOHOHOHOHO.....
Funnier than hell....
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Re:
Posted on: 2024-04-13 07:36:03
By: Anonymous
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TRUMPS GONNA HAVE A PUBLIC MELTDOWN IN COURT!!!
And it will be triggered by the two women he banged while melania was giving birth to that poor son of theirs. You know, THE OTHER, backward one, along with Eric "God I wish I had him aborted when I had the chance" Trump.
The meltdown will be epic, triggered by two
hohohohohohohohohohohohohohohohohoho's....................
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
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Re:
Posted on: 2024-04-13 08:44:37
By: Anonymous
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I always thought that it must have been hard for trump not to brag that he banged those beautiful women, and instead he had to deny and payoff.
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No Subject
Posted on: 2024-04-12 08:06:59
By: Anonymous
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Joke and his band of dumb as es created the problem, then you turn around and bail the loosers out, and now ur the savior of the world! This really boils down to one major issue for many, u live a lifestyle that I have at 80, and you are still living in your parents care at 35, most of us seniors worked till we could afford some thing, you have been taught to buy, buy buy, someone will pay for it, such as student loan forgiveness, learn to live within your means!
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Re:
Posted on: 2024-04-12 08:39:09
By: Anonymous
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Trumps cognitive decline. That fool could not debate himself. The same reason he cannot testify for himself. Everything he has ever done. A complete fraud and flat out criminal.
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Re:
Posted on: 2024-04-12 08:41:13
By: Anonymous
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Meidastouch network. It kicking trumps criminal ass.
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Re:
Posted on: 2024-04-12 08:43:44
By: Anonymous
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My podcast,my podcast. Have you fox idiots seen my podcast. Hey Ted Cruz. Slow your roll.
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Re:
Posted on: 2024-04-12 09:19:44
By: Anonymous
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Desperate Joe going Down
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No self control!
Posted on: 2024-04-12 10:30:19
By: Anonymous
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No self control - concerts, sporting events, trips, flights, eating out frequently, fun times - charge, charge, charge!!! No self control, foresight or fiscal prudence.
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Re: No self control!
Posted on: 2024-04-12 10:53:46
By: Anonymous
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Democrats are the welfare party of America, that's why they keep voting for Democrats. The believe in " The Vote For Me Is A Vote For Free FREE FREEEEEEEE!!!
CA is the least educated state in our Nation of adults aged 25 plus, also the largest number of liberal democrats....that's not a coincidence. Just read their comments and you'll see it's a FACT.
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Re: No self control!...the Welfare Party
Posted on: 2024-04-12 12:02:36
By: Anonymous
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Corporations receive tax breaks, billions in profits passed on to the stock market.
Farm subsidies. Money passed on for producing nothing. Raising consumer prices.
Oil companies. Us oil production at its highest levels, yet FauxNews has the dotards convinced that the price of gas is due to Biden policies.
Inflation. Caused by the 1% to convince the 99% that Bidenomics is at fault.
Trump will MAGA.
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Re: No self control!...the Welfare Party
Posted on: 2024-04-12 15:02:02
By: Anonymous
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Use your mind! God gave you one! You know what the Dems are doing is fatal to everything the US used to stand for. If the world loses the US as a beacon of basic freedoms the entire world will go into darkness.
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Re: No self control!
Posted on: 2024-04-12 12:07:28
By: Anonymous
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The dip in 2020 was fake flu Coronavirus a democrat smoke show. No democrat and Lil Joey has done jack $het for American people. Jokes over…quit calling yourself a democrat and standing up for democracy. Liberal socialist party of thieves. And hypocrisy. Embarrassing. Disgusting display of arrogance. And stupidity. The donkey party.
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Re: No self control!
Posted on: 2024-04-13 07:38:58
By: Anonymous
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^Buy more TruthSocial, and a few Trump steaks while you admire your diploma from Trump U.
Who's the dumbass?
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