The national default rate on first mortgages in May was about 0.63%, down six basis points compared with April, according to the S&P/Experian Consumer Credit Default Indices.
It was the third consecutive month that the default rate on first mortgages dropped, according to the index. The national default rate on first mortgages in April was about 0.69%, down eight basis points compared with March.
Meanwhile, the national default rate for auto loans in May was about 0.92%, down five basis points compared with April, and the default rate for credit cards was about 3.11%, up two basis points compared with the previous month.
The composite rate in May was 0.81%, down five basis points from the previous month.
“Overall the consumers’ credit picture is very good,” says David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “Consumer credit default rates continue at the lowest levels in more than 10 years and well below those seen before the financial crisis. These positive developments are supported by continued gains in the economy: an unemployment rate under five percent, combined with increases in incomes and wages and stable prices. Debt service ratios remain close to record lows, while outstanding consumer credit and mortgage debt have risen modestly this year.”