More Americans are falling behind on their home and car loans, according to the Federal Reserve Bank of New York. The New York Fed’s latest Quarterly Report on Household Debt and Credit showed that a greater share of people went at least 30 days late on their mortgage payments in the second quarter of this year than in any quarter since 2015.

Delinquency Rates

Additionally, more people went into serious delinquency – or 90 days late or more – on their car payments during the same time period than at any quarter since 2010. However, overall delinquency rates are elevated from where they were pre-pandemic, but they’re holding fairly stable and not deteriorating to where they were during the Great Financial Crisis or its immediate aftermath.

According to Matt Schulz, consumer finance analyst for LendingTree, the jump in auto loan debt is a warning sign, especially with gas prices surging in recent months. “It’s no surprise that auto loan delinquencies are creeping higher, but it is still concerning,” he said. “People generally don’t stop paying their auto loan until they’re under real financial pressure. For many Americans, their car is what gets them to work and keeps their daily lives moving.”

The US economy is growing; unemployment remains low; and the interest and investment in artificial intelligence has served as rocket fuel for stocks and wealth for a good share of Americans. However, the economic expansion masks widening inequities. Five-plus years of higher-than-normal inflation has compounded the cost of living, especially for those who can afford it the least.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.