There has been an large increase of delinquencies in home equity loans and lines of credit. Oddly there has been a decrease in delinquencies in other types of consumer loans such as for cars, home improvements and even boats and recreational vehicles.

The news of the delinquencies comes as Freddie Mac reports that the 30 year fixed mortgage rate has remained above 5%.

Financial author Roger Lowenstein brought up a good point in his recent article in the New York Times Magazine.

People used to do anything and everything to keep their home, but nowadays it seems as though people are more willing to let go of their homes in order to keep their money. He argues that this isn’t being irresponsible, and that when people are faced with this problem they maybe be better off handing the house over to the bank.