Consumer default rates almost back to levels seen before the housing crisis

On April 17th, S&P Indices and Experian released March data for the S&P/Experian Consumer Credit Default Indices, which measure consumer credit default rates. March data showed a sharp decline in the composite index, led by a 14 basis point drop in first mortgage default rates. While having a much smaller weight in the composite, second mortgage default rates fell by even more during the month, 17 basis points. The national composite declined to 1.96% in March from its 2.09% February rate, the first mortgage default rate decreased from February’s 2.02% to March’s 1.88% and the second mortgage rates declined from 1.20% in February to 1.03% in March.

With March’s data, first and second mortgage, auto and composite default rates all reached post-recession lows.

As seen in the graph below, consumer default rates are close to their pre-crisis rates, with the first mortgage and composite rates around those last witnessed in the summer of 2007, and the second mortgage rates back to mid-2006 levels. Another sign of progress in the repair of consumer debt.

S&P/Experian Consumer Credit Default Indices. Sources: S&P Indices and Experian.

The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions.

One Trackback

  1. By Friday Morning Links | Iacono Research on April 20, 2012 at 8:40 am

    […] Break Down – WSJ Obama Administration to Kick-Off New Unemployment Program – WSJ Consumer default rates almost back to pre-crisis levels – S&P Britons Abandoning Pensions Amid ‘Outdated’ Rules – Bloomberg German […]

Post a Comment

Thank you for submitting a comment. We ask you to use the comment guidelines to promote thoughtful and productive discussions. Your comment will be approved before it will be posted. Thank you for your patience.

Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  • Categories

  • Recent Comments

  • Tags