Data through June 2013, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, showed decreases in national default rates during the month. Both national composite and the first mortgage default rates hit new post-recession lows. The national composite was 1.34 percent in June, down from 1.42 percent in May. The first mortgage was 1.23 percent in June, down from 1.31 percent posted last month. The second mortgage posted 0.54 percent in June, the lowest rate in the history of the index. It was down from 0.60 percent posted in May. The bank card rate was 3.41 percent in June vs. 3.63 percent in May. The auto loan default rate hit a new low in June posting 1.00 percent; it was marginally down from its 1.04 percent May level.
“Consumers’ financial condition continues to improve," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “Across all categories default rates are falling. The first mortgage hit a new post-recession low of 1.23 percent in June. Bank card default rate was 3.41 percent, 22 basis points down from last month. The second mortgage and auto loan default rates hit new lows of 0.54 percent and 1.00 percent since the indices began in 2004. All loan types remain below their respective levels a year ago.
“Two of the five cities, New York and Miami, saw decreased default rates in June. New York dropped 61 basis points and Miami was down 13 basis points this month. Miami was at a post-recession low of 1.75 percent. Chicago, Dallas and Los Angeles were slightly up by four, seven and eight basis points respectively. All five cities have default rates at or less than 1.75 percent and remain below default rates they posted a year ago, in June 2012.”