Data through July 2013, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed increase in national default rates during the month. The national composite was 1.35 percent in July, up from 1.34 percent in June. The first mortgage was 1.25 percent in July, up from 1.23 percent posted last month. The second mortgage remained flat since last month at its historic low of 0.54 percent. The auto loan default rate posted 1.03 percent in July, up from a 1.00 percent June level. The bank card rate hit a new low of 3.22 percent in July; it was 3.41 percent in June.
“Consumer credit quality remains healthy”, says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “The first mortgage was 1.25 percent in July, only two basis points up from its recent low posted last month. Across all other categories default rates remain at or marginally above their historic lows. The second mortgage default rate remained flat at a new low of 0.54 percent reached last month.
Bank card default rate hit a new low of 3.22 percent, 19 basis points down from June and 41 basis points down from May level. Auto loan default rate was 1.03 percent, three basis points up from its historic low posted last month. All loan types remain below their respective levels a year ago. “All five cities saw increased default rates in July. Miami increased the most; it posted 2.06 percent, 31 basis points up from last month. Chicago recorded 1.75 percent, 16 basis points above the last month’s level. New York increased by nine basis points, Dallas by five and Los Angeles by three basis points. All five cities remain below default rates they posted a year ago, in July 2012.”