Home equity loan performance in the U.S. continues to chug along at historically low delinquency and chargeoff rates, according to Moody's Investors Service's Home Equity Index Composite.
Rates of 60-plus day delinquencies and chargeoffs were flat in April compared to March, the rating agency reported last week. April was the sixth month in a row that charge offs in the U.S. home equity sector remained below 0.9%.
Moody's attributes the historically good performance to a continued high volume of home equity issuance, low mortgage rates and a strong housing market. As new loans enter the rating agency's composite, overall averages of various performance benchmarks are watered down. Issuance in April did fall from March levels, but is still more than 26% higher than the same time last year, according to Moody's.
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