Serious delinquency on first mortgages dipped last month. While a more significant improvement was made on second mortgages, the category has seen deterioration from a year ago.
Based on the Composite Consumer Credit Default Index, 90-day delinquency on consumer credit was 0.84 percent in September. The rate was off a basis point from a month earlier.
Compared to a year earlier, the index — which reflects performance on auto loans, bank cards, first mortgages and second mortgages — indicated that the 90-day rate was down 5 BPS.
The index is published by
S&P Dow Jones Indices and Experian.
A 9-basis-point decline from August was recorded for the Miami metropolitan statistical area — the biggest drop of the five-largest MSAs tracked. Still, Miami’s 1.12 percent 90-date rate as of last month was the highest of the five MSAs.
In Los Angeles, the 90-day rate was 0.59 percent, the lowest composite rate among the five MSAs.
“The default rates for major categories and for the five cities highlighted in this report continue to drift down to the lowest figures seen in 12 years,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in the report.
The U.S. 90-day delinquency rate on
just first mortgages was 0.67 percent as of Sept. 30. Serious first-mortgage delinquency slipped 1 basis point from the previous month and dropped 9 BPS from a year previous.
Second-mortgage serious delinquency finished the most-recent month at 0.56 percent. A 4-basis-point improvement was made versus August. But the second-mortgage 90-day rate has deteriorated 9 BPS compared to September 2015.
“A rare decline in mortgage debt outstanding and slower growth in consumer credit following the 2007-2009 recession contributed to improvements in consumers’ financial condition which has been sustained in the last few years,” Blitzer stated.
