Consumer credit default ranks showed an uptick in September, according to the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults.
The national composite posted 1.04% in September, up three basis points from July 2014's historical low.
The bank card rate decreased for the third consecutive month, down by 10 basis points to 2.63%.
"Default rates for bank cards reversed an increase seen in the first half of 2014 while defaults on first mortgages and auto loans appear to have bottomed out over the summer. However, none of these movements are very large," says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. "Despite their slight increase, default rates are still near the lows seen before the 2007-2009 recession and financial crisis."
For the second consecutive month, the first mortgage default rate rose, to 0.93% in September. The second mortgage default rate rose one basis point to 0.52%, its first increase since April 2014.
"Chicago, Dallas, New York and Miami all reported rate decreases, with Miami posting a default rate of 1.21%, its lowest rate since June 2006 and New York posting a default rate of 1.05%, its lowest since September 2005. Los Angeles for the second consecutive month posted a rate increase of 0.77%, up 11 basis points from its historical low in July 2014. All five cities Chicago, Dallas, Los Angeles, Miami and New York remain below default rates seen a year ago."
