Recent data released by S&P Dow Jones Indices and Experian revealed that the national composite mortgage default rate fell in January.
The national composite was 1.63 percent in January, compared to 1.72 percent in December. The first mortgage default rate fell from 1.68 percent in December to 1.58 percent in January, while the second mortgage rate remained unchanged.
While auto loan default rates increased slightly from December, bank card default rates fell from 3.53 percent in December to 3.41 percent in January, hitting their lowest rate since the end of the recession.
“The beginning of 2013 continued the positive trend in consumer credit quality that we witnessed in 2012,” David M. Blitzer, the managing director and chairman of the Index Committee for S&P Dow Jones Indices, said. “All loan types remain below their respective levels a year ago.”
While Chicago, Dallas and Los Angeles saw a decrease in their default rates last month, Miami and New York’s default rates increased. Chicago’s default rate fell from 2.12 percent in December to 2.07 percent in January, Dallas’ default rate fell from 1.26 percent to 1.19 percent and Los Angeles’ default rate fell from 1.84 percent to 1.81 percent.
Miami’s default rate, however, increased from 3.07 percent in December to 3.45 percent last month, while New York’s default rate rose slightly from 1.51 percent to 1.53 percent.