On May 15th, S&P Indices and Experian released April 2012 data for the S&P/Experian Consumer Credit Default Indices, which measure consumer credit default rates. April data showed a decline in the composite index, led by a 12 basis point drop in first mortgage default rates. While having a much smaller weight in the composite, second mortgage default rates fell by almost as much during the month, 10 basis points. The national composite declined to 1.86% in April from March’s 1.96% rate, the first mortgage default rate decreased from March’s 1.88% to April’s 1.76% and the second mortgage rates declined from 1.03% in March to 0.93% in April.
Mimicking March’s trend, with April’s data first and second mortgage, auto and composite default rates all reached post-recession lows. Four of the five cities we cover saw their default rates drop, with all four at post-recession lows.
As seen in the graph below, consumer default rates are close to or below 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 the summer of 2005 levels. Good news for the consumer and the housing market.
For the complete release click here: S&P/Experian Consumer Credit Default Indice, May 2012 release