MADISON, Wis.–Ongoing increases in delinquencies, especially in automobile loans, can be seen in the new CUNA Economic Update.
According to CUNA Chief Economist Mike Schenk, the report shows:
- Mortgage delinquencies. With data obtained by Equifax, CUNA economists said they have found “slight upward movements” in mortgage delinquency rates.
- Credit card delinquencies. Bigger increases in delinquency rates relative to the cyclical low – as seen during the COVID-19 pandemic – is concerning, said Schenk.
- Auto loan delinquencies: Data shows a “dramatic” increase in delinquency rates among institutions such as auto financing companies.
CUNA Forecast
CUNA’s economists are forecasting delinquency rates will peak at 1% by the end of 2024. Net charge-off rates are also believed to be heading towards 70 basis points, the CUNA forecast states. Schenk said both forecasts are higher than long-term norms, but only modest in comparison to the Great Recession.
“The U.S. economy is not in recession at the moment. Experts say recessions are defined as a significant broad-based decline in economic activity that lasts for more than a couple of months,” said Schenk. “With the labor market as strong as it is, it is very difficult to say that this is a broad-based decline in economic activity.”
As the Holidays Approach, Give Yourself a Gift!
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?