Fed data: Delinquencies on the rise
The delinquency rate for all RE loans jumped to 1.47% in Q3 from 1.38% in Q2. That's the highest since Q2 2004. The residential RE delinquency rate jumped to 1.72%, the highest since Q4 2003, while commercial RE delinquencies were only 1.10%, the highest since Q1 2005.
It's important to note that these deliquency rates are VERY low historically. But the trend is clear -- toward higher DQ rates. All the easy money/Frankenstein Financing handed out during the housing bubble is coming back to bite lenders. The only question is, "How severe will the fallout be?"
Delinquency rates for most other loan categories (agricultural, commercial & industrial, etc.) remain low, though credit card DQs are picking up. Charge-offs remain low, but they lag DQs by a few months (you have to miss a payment first, then the bank tries to get you caught back up, THEN they charge off the loan as uncollectable)