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

IndexAugust 2013 Index LevelJuly 2013 Index LevelAugust 2012 Index Level
Composite1.341.351.50
First Mortgage1.231.251.40
Second Mortgage0.570.540.72
Bank Card3.123.223.77
Auto Loans1.111.031.09
Source: S&P/Experian Consumer Credit Default Indices
 

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

Metropolitan Statistical AreaAugust 2013 Index LevelJuly 2013 Index LevelAugust 2012 Index Level
New York1.211.521.49
Chicago1.831.751.92
Dallas1.130.971.07
Los Angeles1.441.561.60
Miamia2.192.062.62
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.