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.”
“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|
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|
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.