People have stopped paying their mobile-home loans, and it’s a warning sign for the economy

The mobile-home market is showing signs of stress.

The delinquency rate on mobile-home loans has increased by 200 basis points, or 2 percentage points, over the past year, according to research cited by UBS. The 30-day-plus delinquency level is now about 5%, the highest level since 2005.

The increase in the number of struggling mobile-home borrowers suggests that a large chunk of these people haven’t benefitted from the economic growth of the past few years, despite the low unemployment level.

“We interpret this data to mean that these individuals have not largely benefitted from these macro-dynamics, and may also be disproportionately exposed to industries that have experienced compression – rather than expansion – in the current economic conditions, such as retail or some areas of energy extraction,” UBS said.

Conventional single-family residential loan delinquencies haven’t seen a similar uptick, instead continuing their steady downward path through the post-recession recovery.

This data represents a piece of a jigsaw puzzle of the condition of consumer finances in the US. And the picture that’s emerging, according to UBS, is of a two-speed economy, with lower-income consumers and younger borrowers with substantial student debt moving at a slower pace than more affluent and established participants.

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7 Replies to “People have stopped paying their mobile-home loans, and it’s a warning sign for the economy

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  2. Wait one minute: the people on the news and Wall Street, plus the Tramp admin are telling us that the economy is great and that there are jobs and money flowing. WHY is this happening???

  3. “”…the economic growth of the past few years, despite the low unemployment level.””

    low unemployment level! where did yalls hear that, on TV? tell that to the huge army of unemployed people in every major city of the U.S.

  4. How very interesting; how many of the Mobile Homes have a HUD or VA Loan against them?
    Many Mobile Homes are scattered about in rural and semi-rural areas. This goes against Agenda 21 and the Georgia Guidestones!
    But what advantage does the Mobile Home Owner in default of a loan have over an ordinary fixed-foundation homewoner?
    The Mobile Home can be moved in the middle of the night, and taken to a well-wooded and camouflaged location, thus escaping the creditors!
    & once on location, the wheels can then be removed, insuring immobility in the event that the creditors find the said ‘Mobile Home’…

  5. I cringe every time I read that malarkey about low unemployment and economic growth. No mention of the millions whose unemployment benefits have expired or who have had to trade well paying manufacturing jobs for minimum wage service jobs. The only growth is among the vampires at the top of the food chain.

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