Data through May, released Thursday by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, showed no change in national default rates during the month.
The national composite was at its post-recession low of 1.42% in May. The first mortgage default rate was 1.31% during the month, showing no change since April. The bank card rate was 3.63% in May vs. 3.61% a month earlier. The second mortgage and auto loan default rates decreased in May posting 0.60% and 1.04%; they were marginally down from their respective 0.62% and 1.07% April levels.
Consumer credit quality looks healthy, says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. The first mortgage default rates remained at its post-recession low of 1.31% in May. Bank card rates were marginally higher while the second mortgage and auto loans were a touch lower this month. The second mortgage default rate hit a new low of 0.60% since the indices began in 2004. All loan types remain below their respective levels a year ago.
Three of the five cities we cover saw decreased default rates in May Chicago and Dallas were down by 15 basis points each and Miami was 33 basis points lower," added Blitzer. "Chicago and Miami reached post-recession lows. New York was up 26 basis points and Los Angeles rose nine basis points. For the first time since 2006 New York had the highest default rate of 2.04% among the five cities covered. Dallas hit a historic low of 0.85% and has the lowest rate among the five cities. All five cities remain below default rates they posted a year ago, in May 2012.