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Latest Consumer Credit Default Indices Shows Stability in Default Rates

Nov 19, 2013

Data through October 2013, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices showed stability in national default rates during the month. The national composite was 1.38 percent in October; it showed no change since September. The first mortgage default rate was 1.30 percent this month, marginally up from 1.28 percent posted last month. The second mortgage posted 0.72 percent in October, slightly up from 0.69 percent September rate. The auto loan default rate was 1.14 percent in October, marginally down from a 1.15 percent posted in the previous month. The bank card rate posted 2.97 percent in October; down from 3.14 percent September rate. “Consumer financial well-being is in a good shape”, says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “The indices remain at pre-financial crisis levels and are stable. The national composite remained flat since September at 1.38 percent.The first and second mortgages were a few basis points up in October; they posted 1.30 percent and 0.72 percent. Auto loan default rate was 1.14 percent, one basis point lower than in September. Bank card default rate reached a new low of 2.97 percent; for the first time in the history of the index it was below three percent. The Composite, first mortgage and bank card default rates remain below their respective levels a year ago. “Three cities – Chicago, Los Angeles and New York – saw default rate decreases. Los Angeles posted a recent low of 1.25 percent. Miami remained flat. Dallas posted a default rate increase. All cities except Miami posted rates below two percent. Miami has a highest rate among the five cities we cover (2.11 percent) and Los Angeles - the lowest (1.25 percent). Four cities – Chicago, Los Angeles, Miami and New York - remain below default rates they posted a year ago, in October 2012.”
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