Mortgage balances on consumer credit reports dropped by about $114 billion or 1.3% during the third quarter, according to the Federal Reserve Bank of New York's latest report on household debt and credit.
But the New York Fed found that the trend toward reductions in the percentage of current mortgage balances going delinquent reversed during the period. Roughly 2.5% of current mortgage balances became delinquent in the third quarter. New foreclosures dropped by 7% quarter over quarter.
The report released Monday also indicated that home equity lines of credit increased during the period by around $14 billion or 2.3%.
The latest data continues to bear out continuing consumer trends toward deleveraging due to declining home values and economic challenges, but it also shows signs of a persistent interest in consumer credit, according to Andrew Haughwout, vice president in the Research and Statistics Group at the New York Fed.
