The national composite fell to 1.55 percent in February from 1.63 percent in January. The first mortgage default rate fell from 1.58 percent to 1.48 percent over the same time period, and the bank card default rate fell to 3.37 percent from 3.41 percent. Auto loan and second mortgage default rates increased slightly from 1.10 percent to 1.11 percent and 0.69 percent to 0.71 percent, respectively, National Mortgage Professional reports.
“Consumer credit quality remains healthy,” David M. Blitzer, the managing director and chairman of the S&P Dow Jones Indices’ index committee, said, according to National Mortgage Professional. “All loan types remain below their respective levels a year ago. These trends are consistent with other economic news—improvements in employment and overall economic activity and continuing gains in housing. Additionally, foreclosure activity continues to decline even though it remains at elevated levels compared to the period before the financial crisis.”
Three of the five cities covered by the indices posted declines in default rates in February, including New York, Los Angeles and Miami. Default rates in Chicago and Dallas, however, rose slightly from January, though default levels for all five cities are lower than last February, Reuters reports.