Default rates shoot up in August

by Candyd Mendoza18 Sep 2019

The composite default rate, which includes mortgage and auto defaults, edged up in August, according to data from the S&P/Experian Consumer Credit Default Indices.

The indices measures changes in consumer credit defaults. It showed that the composite rate was up seven basis points to 0.92%.

The first-mortgage and auto-loan default rates also rose seven basis points to 0.69% and nine basis points to 0.98%, respectively. Meanwhile, the bank-card default rate dropped four basis points to 3.73%.

The default rates in four major metropolitan statistical areas (MSA) posted gains last month. Chicago and Dallas had the biggest increase of 10 basis points each to 1.05% and 0.93%, respectively.

New York followed with a five-basis-point increase (0.94%), while the default rate for Los Angeles climbed three basis points (0.77%).

 Miami, on the other hand, was the only MSA to report a decrease, with a reduction of six basis points (1.28%).