First and second mortgage default rates fell in June to 2.02% and 1.40% respectively, according to the Standard & Poor's /Experian Consumer Credit Default Indices. Last month the two default rates were recorded at 2.09% and 1.42%, respectively.
The default rate for auto loans also declined to 1.29% for the month, down from 1.34% in May, while bank cards enjoyed the largest decrease of 24 basis points to reach 5.69%.
Of the five major Metropolitan Statistical Areas (MSAs), Chicago experienced the largest increase in default rates, rising 22 basis points to reach 2.59% in June, according to the S&P/Experian Indices. Meanwhile, Dallas suffered a slight increase to 1.59%, while Miami’s default rate rose 10 basis points to 5.41%.
Conversely, New York and Los Angeles both experienced declines in default rates, falling to 1.82% and 2.17% respectively.