Composite rate edged up one basis point last month
Even with the low mortgage rates, the default rate of first mortgages experienced a slight upturn last month, according to the S&P Dow Jones Indices.
The first-mortgage default rate rose to 0.73% in September, up four basis points from 0.69% in August. A year ago, the default rate was 0.82%, according to the S&P/Experian Consumer Credit Default Indices.
The composite rate also increased one basis point to 0.93% from 0.92% the month before. Additionally, the default rate for auto loans saw a seven-basis-point spike, up from 0.98% in August to 1.05% in September.
Meanwhile, the bank-card default rate plummeted to 3.32%, falling 41 basis points from 3.73% the prior month.
In three of the five major metros, the credit default rate was higher compared to the previous month, with Chicago showing the biggest increase. Default rates in Chicago grew 14 basis points to 1.19%.
Miami and New York followed with a two-basis-point gain each, to 1.30% and 0.96%, respectively. The rate for Dallas remained unchanged at 0.93%.
Los Angeles, on the other hand, was the only city with a decrease in default rates, dropping five basis points to 0.72%.