The rate of mortgage default in the U.S. continued to drop through June, hitting new post-recession lows, according to data released by the S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices.
The first mortgage default rate hit 1.23% in June, down from 1.31% in May on an unadjusted basis, while the second mortgage default rate reached 0.54%, down from 0.60% to reach the lowest rate in the history of the index.
The national composite default rate, including credit card and car loan default rates, hit 1.34%, down from 1.42% the month prior.
‘Consumers' financial condition continues to improve,’ said David M. Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, in a press release. ‘Across all categories, default rates are falling.’
Looking at the default rate for the five largest metro markets, New York dropped 61 basis points, and Miami was down 13 basis points, with Miami hitting a post-recession low of 1.75%. Chicago, Dallas and Los Angeles were up by four, seven and eight basis points, respectively. All five cities had default rates at or less than 1.75%, far below the default rates they posted in June 2012.
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