The default rate for first mortgages was 1.25% in July, up from last months low point of 1.23%, while second mortgage defaults remained flat since last month at its historic low of 0.54%.
Consumer credit quality remains healthy as across most categories default rates remain at or marginally above their historic lows, says Managing Director and Chairman of the Index Committee for SP Dow Jones Indices, David Blitzer.
In addition all five cities saw increased default rates in July.
Miami saw the highest increase up 31 basis points from last month to 2.06%, followed by Chicago at 1.75%, up 16 basis points, New York nine basis points, Dallas by five and Los Angeles by three basis points.
Nonetheless all five cities remain below default rates they posted a year ago, in July 2012,” he said.