Despite recent escalation in mortgage interest rates, serious delinquency held steady last month. Current conditions suggest further continued strong performance.
Including first and second mortgages, bank cards and automobile loans, consumer delinquency of at least 90 days was 0.96 percent as of Feb. 28.
Serious consumer delinquency inched up a basis point compared to the preceding month. A 2-basis-point year-over-year increase was recorded for the 90-day rate.
The rate is based on the
S&P/Experian Composite Consumer Credit Default Index.
Among five of the largest metropolitan statistical areas tracked in the report, Miami’s composite rate was 1.54 percent — the highest of any MSA. In addition, Miami’s rate was up 27 BPS from
January — the largest month-over-month increase.
Los Angeles’ rate was 0.64 percent — the lowest of any city. Furthermore, Los Angeles’ 90-day rate tumbled 13 BPS from the prior month — more than any other area.
On just first mortgages, the report indicated that February 2018’s U.S. 90-day rate landed at 0.72 percent.
While there was no change from January in the first-mortgage rate, a 2-basis-point decline was noted compared to February 2017.
“Recent small increases in mortgage and automobile loan interest rates do not appear to be affecting default trends,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in the report. “The currently favorable economic conditions — low unemployment, stable inflation and expectations that current conditions will continue — all support the good credit default conditions.”
