Lates Down on 2nd Mortgages, Hold on 1sts

Consumer credit delinquency of at least 90 days was 0.97 percent as of Feb. 29. The metric reflects performance on auto loans, bank cards and first and second mortgages.

The rate of serious delinquency deteriorated slightly from a month earlier, when it came in at 0.96 percent. But improvement was reported from 1.12 percent a year earlier.

That was according to the the S&P/Experian Consumer Credit Default Composite Index.

“Recent gains in the labor market — a large jump in job growth in February, an unemployment rate at 4.9 percent and the low level of weekly initial unemployment claims — all contribute to good consumer credit conditions,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in the report. “Low and falling gasoline prices imply extra spending money for many consumers, helping both spending and credit issues.”

But Blitzer warned that a recent rebound in oil prices, if sustained, could push up gas prices and dampen consumer spending.

Miami had the highest 90-day composite rate last month among the five-largest metropolitan
statistical areas: 1.07 percent. Still, delinquency in the south Florida town was 10 basis points lower than as of Jan. 31.

The Miami MSA has made a dramatic improvement since the crisis era. In December 2009, the 90-day composite rate was around 13.72 percent in Miami compared to a U.S. rate at the time of
roughly 4.78 percent.

At 0.76 percent, Los Angeles had the lowest 90-day rate in February 2016, though that was up four BPS from the previous month.

Loan performance on U.S. first mortgages was maintained last month, with the 90-day rate unchanged from January at 0.84 percent.

Still, serious delinquency on first mortgages has declined from February 2016, when it stood at 1.00 percent.

A five-basis-point improvement from January was made on second-mortgage serious delinquency, leaving the rate at 0.60 percent.