National credit default rates accelerated in January from recent lows seen last year.
The SP/Experian consumer credit default national increased for the sixth consecutive month, posting a national default rate of 1.12% in January. This figure is up one basis point from the month before and is 11 basis points higher than its low seen in July 2014.
The first mortgage default rate held steady at 1.02% in January, but is 14 basis points above the July 2014 low. Meanwhile, the default rate for second mortgages rose five basis points, to 0.64%, while auto loan defaults also were up one basis point, to 1.03%. The only category that saw defaults decrease from December was bank cards, down four basis points, to 2.61%.
“The recent improvements in the economy have boosted consumer spending and confident without any significant increase in consumer credit defaults,” the companies said in Tuesday’s report.
“The favorable pattern of stronger spending and stable default rates could be threatened by higher interest rates or a rebound in oil and gas prices. However, for the moment the economy is justifying consumers’ upbeat outlook.”