WS #15702
Federal Reserve data indicates a sharp rise in US household delinquency rates to 7.2%, marking the highest level since the 2009 financial crisis. Mortgage arrears have surged 14% year-over-year to $124 billion, and credit card charge-offs are up 9%. This deterioration in consumer credit health poses a significant headwind for consumer discretionary spending and increases the risk of margin calls in leveraged markets.
US Consumer Credit Deterioration
Federal Reserve data indicates a sharp rise in US household delinquency rates to 7.2%, marking the highest level since the 2009 financial crisis. Mortgage arrears have surged 14% year-over-year to $124 billion, and credit card charge-offs are up 9%. This deterioration in consumer credit health poses a significant headwind for consumer discretionary spending and increases the risk of margin calls in leveraged markets.