S&P/Experian: December Consumer Credit Default Rates Stabilize

Consumer credit default rates remained largely unchanged in December, as reported by Standard & Poor’s Dow Jones Indices and Experian, New York.  

The S&P/Experian Consumer Credit Default Indices showed the composite rate at 0.97 percent in December, unchanged from November. The first mortgage default rate increased by two basis points, posting 0.84 percent for December. The bank card default rate decreased by 42 basis points in December, recording a default rate of 2.49 percent. The auto loan default rate was unchanged from November at 1.04 percent.  

Three of the five major cities saw their default rates decrease during December. Los Angeles reported a default rate of 0.65 percent, down nine basis points from November. Miami’s default rate dropped by four basis points to1.44 percent. Chicago’s default rate decreased three basis points to 1.00 percent. New York’s default rate rose to1.04 percent, up nine basis points, while Dallas reported a 22 basis point increase to 1.10 percent.  

“The consumer economy looks good,” said David Blitzer, managing director & chairman of the Index Committee with S&P Dow Jones Indices. “Consumer credit default rates are low and stable, and consumer sentiment measures are upbeat…There was no response among consumers to the Fed’s recent rate increase, no rush to apply for mortgages.”