After many years of rapid economic growth, energy producing regions of the nation are feeling the pain of lower oil and natural gas prices. According to the Federal Reserve Bank of New York’s quarterly report on household debt and credit, delinquencies on auto loans have spiked in U.S. counties that had the highest employment in the oil and gas industry.
As reported in the Wall Street Journal, mortgage delinquencies are also on the rise in these counties, but not as dramatically. The good news is that auto and mortgage delinquencies are falling in much of the balance of the nation, and that energy intensive counties encompass less than two percent of total national employment.
The national credit picture remains one of gradual improvement. The share of people behind on their mortgage payment by more than ninety days recently declined to its lowest level since two thousand and seven. The share of all household debt that is delinquent declined to three point six percent during the first quarter, also the lowest since two thousand and seven.
But overall indebtedness is growing, including the amount of student loans, which expanded by nearly 30 billion dollars during the first quarter. About 11 percent of student loans balances are delinquent.
