U.S. decrease in consumer credit defaults

There has been a decrease in consumer credit defaults in the USA, according to data released by the S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices. 

The national composite decreased from 1.35% in July to 1.34% in August.

The first mortgage default rate was 1.25% in July, compared to 1.23% in August. The second mortgage default rate increased from 0.54% in July to 0.57% in August. In addition, the auto loan default rate for August was 1.11%, higher than July’s rate of 1.03%.

David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices, said:

“Consumer credit quality continues to look healthy. 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% and 1.23%, marginally down from the last month’s rates. The second mortgage posted 0.57%, three basis points up from July low. Auto loan default rate was 1.11%, eight basis points up from the last month. Bank card default rate hit a new low of 3.12%, ten 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.”

He added:

“Two cities, New York and Los Angeles, saw their default rates drop in August while three cities – Chicago, Dallas and Miami – saw increases. All moves were small. All five cities remain below default rates they posted a year ago, in August 2012.”

S&P/Experian Consumer Credit Default Indices National Indices

Index August 2013 Index Level July 2013 Index Level August 2012 Index Level
Composite 1.34 1.35 1.50
First Mortgage 1.23 1.25 1.40
Second Mortgage 0.57 0.54 0.72
Bank Card 3.12 3.22 3.77
Auto Loans 1.11 1.03 1.09
Source: S&P/Experian Consumer Credit Default Indices
 

S&P/Experian Consumer Default Composite Indices for the five MSAs:

Metropolitan Statistical Area August 2013 Index Level July 2013 Index Level August 2012 Index Level
New York 1.21 1.52 1.49
Chicago 1.83 1.75 1.92
Dallas 1.13 0.97 1.07
Los Angeles 1.44 1.56 1.60
Miamia 2.19 2.06 2.62
Source: S&P/Experian Consumer Credit Default Indices

The S&P Dow Jones Indices LLC is a part of McGraw Hill Financial, it is the world’s biggest global resource for index-based data, concepts and research.

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