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National Credit Default Rates Hit a Post-Recession Low in June 2013
Wednesday, July 17, 2013 7:55 AM

Data through June 2013, released  by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed decrease in national default rates during the month. Both national composite and the first mortgage default rates hit new post-recession lows.

The national composite was 1.34 percent in June, down from 1.42 percent in May. The first mortgage was 1.23 percent in June, down from 1.31 percent posted last month. The second mortgage posted 0.54 percent in June, the lowest rate in the history of the index. It was down from 0.60% posted in May. The bank card rate was 3.41 percent in June vs. 3.63 percent in May. The auto loan default rate hit a new low in June posting 1 percent; it was marginally down from its 1.04 percent May level.

Two of the five cities, New York and Miami, saw decreased default rates in June. New York dropped 61 basis points and Miami was down 13 basis points this month. Miami was at a post-recession low of 1.75 percent. Chicago, Dallas and Los Angeles were slightly up by four, seven and eight basis points respectively. All five cities have default rates at or less than 1.75 percent and remain below default rates they posted a year ago, in June 2012.