Data through August 2013, released 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 decrease in national default rates during the month. The national composite was 1.34 percent in August, marginally down from 1.35 percent in July. The first mortgage default rate was 1.23 percent this month, down from 1.25 percent posted last month. The second mortgage posted 0.57 percent in August, up from 0.54 percent July rate. The auto loan default rate reported 1.11 percent in August, up from a 1.03 percent previous month’s level. The bank card rate hit a new low of 3.12 percent in August; it was 3.22 percent in July.
“Consumer credit quality continues to look healthy," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “The indices are back to pre-financial crisis levels and are stable. The national composite and the first mortgage posted recent lows in August; they were 1.34 percent and 1.23 percent, marginally down from the last month’s rates. The second mortgage posted 0.57 percent, three basis points up from July low. Auto loan default rate was 1.11 percent, eight basis points up from the last month. Bank card default rate hit a new low of 3.12 percent, 10 basis points down from July level and 65 basis points down from the level posted in August 2012. All loan types remain below their respective levels a year ago."
The table below summarizes the August 2013 results for the S&P/Experian Credit Default Indices:
The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:
“Two cities, New York and Los Angeles, saw their default rates drop in August while three cities – Chicago, Dallas and Miami – saw increases," said Blitzer. "All moves were small. All five cities remain below default rates they posted a year ago, in August 2012.”