More Signs of Improvement in Credit Conditions

By Scott Hoyt in West Chester 10/8/2009

Aggregate credit conditions are still weakening, but at a much slower pace in recent months. The aggregate delinquency rate dipped in September, although default rates continued to rise both in aggregate and within most segments and the delinquency rate was above its June level. At the same time, borrowing is shrinking rapidly. Balances were nearly 4% below where they were last September, while the month-to-month decline remained steep. The three main trends—increased severe delinquency and default, improving early delinquency, and declining balances—are widespread across loan types and geographies....

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