DEEPENING DELINQUENCY

In 25Q4, the aggregate delinquency rate across all debt types was 4.8%, up from 4.5% Q-o-Q. This is the ninth quarterly increase in the past 10 quarters. The rate bottomed out in 22Q4 at about 2.5%. More significantly, the rate is back where it was before Covid, but it’s still rising and may soon approach a 10-year high. The rate is up significantly for student loans and slightly for mortgages.