CHICAGO—Auto loan balances hit $1.008 trillion in Q3 2015—an 11% increase since Q3 2014—and Millennials are a good credit bet.
Those are two findings from TransUnion’s latest quarterly debt and delinquency data.
Overall, TransUnion stated, consumer credit markets maintained a strong performance in Q3. Mortgage delinquency rates continued the trend of double-digit annual declines, and both auto loans and credit cards showed strength through stable default rates and balance growth.
Other key findings:
Auto
- The average auto loan balance was $14,515, a 2.7% increase from the previous quarter.
- Nearly 75 million consumers have an open auto account, an increase of five million since Q3 2014.
Credit cards
- Total bankcard balances grew 4.7% to $637 billion in Q3 2015, compared to $608 million in Q3 2014.
- There were 15.1 million new credit card originations in Q2 2015, up from 13.5 million in Q1 2015.
- The credit card delinquency rate rose to 1.43%, from 1.19% the previous quarter.
Mortgages:
- The mortgage delinquency rate declined to 2.40% in Q3 2015, from 3.36% in Q3 2014.
- Millennials and the 60+ age group are the least risky consumer groups, with delinquency rates at 1.62% and 1.77%, respectively.
- Super prime and prime consumers continue to have strong appetite for mortgage loans, with a 50% and 40% year-over-year increase in originations, respectively (viewed one quarter in arrears).
- Every U.S. state experienced yearly declines in mortgage delinquency rates.