Data through September 2012, released today by S&P Dow Jones Indices and Experian, showed that the default rate on first mortgages decreased from 1.40 percent in August to 1.36 percent in September. At 0.64 percent, the second mortgage default rate fell to the lowest in its eight-plus year history. Both rates reached post-recession lows. “We think it is very fair to say that 2012 has proven to be a period of financial repair for consumers”, says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “Consumers’ financial condition continues to improve as witnessed by these declining credit default rates. The first mortgage default rate has been down or flat for nine consecutive months, another positive housing market statistic. The second mortgage default rate hit the lowest rate in its eight-year history, 0.64 percent. “All five cities we cover showed a decrease in their overall credit default rates; and three of them hit the post-recession lows – Chicago, New York and Los Angeles. Chicago’s rate was 1.82 percent in September, down from 1.92 percent in August. Los Angeles saw a second consecutive monthly decrease, down to 1.45 percent in September, from August’s 1.60 percent. New York’s default rate fell the most. The 1.28 percent September rate was down 21 basis points from August’s rate. While not quite at post-recession lows, Dallas and Miami rates are close to them. Dallas’ September rate was 1.03 percent, down four basis points from August; and it has the lowest default rate of the five cities. Miami’s rate fell by 14 basis points to 2.48 percent in September. Again, not a new low, but an incredibly good number when you compare it to the 18.89 percent rate witnessed in May 2009,” said Blitzer.