The first mortgage default rate maintained its downward trajectory, dropping eight consecutive months to .89% in June from .92% in May, and 1.24 a year ago, according to the S&P/Experian Consumer Credit Default Indices.
The second mortgage default rate stayed frozen in June from .57 in May, but is up from .54 a year prior.
As a whole, the national composite posted 1.02% in June: the lowest default rate in over 10 years of history.
“Consumer credit default rates continue to drift lower and have reached a historical low,” says David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices.
“Recent economic reports are encouraging with the unemployment rate now at a six year low and strong job creation in recent months. The continued declines in consumer default rates confirm other indicators of an improving economy. Credit standards for mortgage loans continue to be somewhat restrictive and may be contributing to low first mortgage default rates," he added.
When looking at the five metropolitan statistical areas, Dallas was the only city to see its default rate increase, posting 0.87% in June 2014.
In addition, Chicago, Los Angeles, Miami and New York are at their lowest default rates since the start of the last recession.