the Federal Reserve Bank of New York show student loan and auto loan balances at record highs, while credit card balances have climbed to about $1.2 trillion. Delinquencies, particularly on credit cards, are also rising, with 90-day-plus late-payment rates for credit cards more than 12% higher than in prior years. Consumers are driving a lot of growth, but there are some signs of weakness for certain parts of the economy, Kan said, adding that these pressures could spill over into housing and mortgage performance.
In regard to credit performance for these pools, delinquencies of 30 days or more ended the third quarter at 5.65%, little changed from the second quarter but 33 basis points higher than a year earlier. Prepayment activity also ticked up, with conditional prepayment rates reaching 14.1% as conventional mortgage rates eased into the low- to mid-6% range and non-QM weighted-average coupons declined to the mid-7% range.
According to the New York Fed, superprime U.S. borrowers-those with credit scores above 760-who carry unpaid student loan balances are expected to see their credit scores drop by an average of 171 points this spring.