Defaults for first mortgages remained at a steady rate in March from February as favorable economic conditions continued, according to the Consumer Credit Default Indices released by S&P Dow Jones Indices and Experian.
The first-mortgage default rate was unchanged at 0.72%. The composite rate was also unchanged at 0.96%. The indices represent a comprehensive measure of changes in consumer credit defaults.
David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said March saw recent trends in consumer credit defaults continue.
"The recent volatility in the stock market has not affected consumer sentiment and spending,” Blitzer said. “The default rate on bank cards continues the modest increases seen in recent months, while default experience on mortgage and auto loans is little changed. The favorable economic environment of stable inflation and unemployment explains the positive results seen in mortgages and auto loans. At current levels, the bank card numbers are not a cause for concern.”
Meanwhile, the index found that the bank card default rate rose 14 basis points to 3.78%, while the auto loan default rate fell four basis points to 1.05%. Bank card default rates are now are at their highest level since July 2012.