On August 16th, S&P Indices and Experian released July data for the S&P/Experian Consumer Credit Default Indices, which measure changes in consumer credit defaults. The indices showed first and second mortgages default rates decreased in July to 1.93% and 1.25%, respectively, from June rates of 2.02% and 1.40%.
The first mortgage index shows default rates at their lowest in four years; while the second mortgage index is showing its lowest level in five years. Since peaking in 2009, mortgage default rates have moved well below these crisis highs and are continuing a now two-year trend of declining default rates. First mortgage default rates peaked in May 2009 at 5.67%; second mortgage default rates had peaked two months earlier at 4.66%.