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 |
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 |
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.