Calculated Risk: Fed: Delinquency Rates Surged in Q1 2009

Bank default rates for residential property, commercial property and consumer credit cards rose sharply in the first quarter of 2009. Commercial property defaults (6.4%) are rising rapidly, and are at the highest rate since the early '90s. Residential property (7.9%) and consumer credit card (6.5%) defaults are at the highest levels since the Fed started tracking the data (since Q1 '91). Although there is credit deterioration everywhere, the rise in these three categories is especially significant. There was also a significant increase in C&I defaults (commerical & industrial). This will probably lead to the closure of many regional banks. Just more evidence of severe credit problems at banks.