S&P Dow Jones Indices: Default rates drop across the board
Composite rates fall to lowest level since 2006
All five national indices witnessed a drop-off for the month of February, according to the latest release by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices.
The national composite came in at 1.30% in February: the lowest rate since August 2006.
Meanwhile the first mortgage default rate hit 1.23% in February, down from 1.26% last month, and the second mortgage reported .69% in February, a drop from .72% in January.
Consumer default rates are now stabilizing at levels similar to those seen before the financial crisis.
“Despite some mixed economic reports and severe weather, consumer credit default rates continue to decline” David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices, said.
Out the five MSAs, only Dallas experienced an increase in default rates, rising 2 basis points from last month to 1.16%.
“Miami recorded the largest downturn; it posted 2.23%, 38 basis points lower than January’s level. Los Angeles continued its downward trend, recording 1.05%, the lowest default rate seen since July 2006,” Blitzer said.
“Miami maintained the highest default rate and Los Angeles had the lowest. Four cities – Chicago, Dallas, Los Angeles and Miami - remain below default rates they posted a year ago, in February 2013,” he added.