Credit delinquency rise may be due to home priorities – study
Consumers choosing to repay auto and home loans rather than credit cards, say authors
Financial stress and households’ priorities may be contributing to the rise in credit delinquencies in the US, say researchers with the Federal Reserve Bank of New York.
Their study, published on March 6, was prompted by recent rises in consumer delinquencies. The authors – Jacob Conway, Natalia Fischl-Lanzoni and Matthew Plosser – say households under financial stress are prioritising payments on their mortgages and auto loans.
They say that as home equity values have risen, so has the cost of
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