Although the rate of serious delinquency on first mortgages continued to recede, there was no improvement on second-mortgage performance.
Consumer loan delinquency of at least 90 days among all types of lenders was 1.02 percent in June, two basis points lower than the previous month.
The 90-day rate, which is also characterized as the rate of serious delinquency, has retreated by 32 BPS compared to the same month last year.
The rate reflects the S&P/Experian Consumer Credit Default Composite Index. The data, which is not seasonally adjusted, is based on loan performance on first and second mortgages, bank cards and auto loans.
“Consumer credit default rates continue to drift lower and have reached a historical low,” David M. Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, said in the report. “Recent economic reports are encouraging with the unemployment rate now at a six-year low and strong job creation in recent months.”
Among the five-biggest metropolitan statistical areas, Miami’s 1.68 percent was highest. But delinquency in Miami was down 6 BPS from the prior month.
Los Angeles’ 90-day composite rate slid 16 BPS from May to 0.75 percent — the lowest among the five-largest MSAs.
Dallas — which had held the lowest rate and fell to the lowest level on record in May — saw its delinquency rate jump 10 BPS from May to 0.87 percent.
Ninety-day delinquency on U.S. first mortgages was 0.89 percent, improving from 0.92 percent in May. First mortgage delinquency has declined each month since October 2013, when it was 1.30 percent.
First mortgage delinquency was 1.23 percent in June 2013.
On second mortgages, the rate of serious delinquency was unchanged at 0.57 percent and worse than 0.54 percent during June of last year.
