Consumer credit default rates continued declining to historical lows in July.
The SP Dow Jones/Experian national composite index was 1.01% in July, which is down one basis point from the previous month and a 34 basis point drop compared to a year ago. The latest July percentage represents the lowest default rate in over 10 years, SP/Experian said.
First mortgage default rates fell for the ninth consecutive month, to 0.88%. This index decreased one basis point from June and 37 basis points from a year earlier.
Bank card default rates experienced the biggest month-over-month drop of 16 basis points, to 2.86%. Meanwhile, SP/Experian revealed that auto loan defaults remained unchanged in July from June, at 0.96%, which is only four basis points higher than its all-time low.
Additionally, all five cities that SP/Experian tracks saw default rates remain below their percentages a year ago.
Miami had the largest July default rate, at 1.51%, a mark not seen since 2006. Conversely, Los Angeles posted its lowest default rate of 0.66%. Dallas’ current default rate of 0.80% is three basis points below its historical low, while Chicago’s 1.17% default rate is the lowest in eight years. Lastly, New York had a 1.14% credit default rate.