For the seventh consecutive month, the rate of serious delinquency on first mortgages improved and now stands at the lowest level in nearly eight years.
Consumer delinquency of at least 90 days was at a rate of 1.04 percent in May. The rate reflects performance on mortgages, bank cards and auto loans.
The rate of serious delinquency on consumer credit has not been this low since May 2006 and stands at just one basis point more than the all-time low.
The performance metrics were based on the S&P/Experian Consumer Credit Default Indices.
A month earlier, the composite index was 1.11 percent, falling for the seventh consecutive month. The month-over-month improvement came despite an increase in auto delinquency and bank card delinquency
The composite index stood at 1.42 percent a year earlier..
Dallas maintained its standing as the metropolitan statistical area with the lowest composite delinquency rate among the five-largest MSAs: a record-low 0.77 percent.
Miami’s 24-basis-point decline was the biggest drop, though its 1.74 percent 90-day rate was still highest. New York saw its delinquency rate deteriorate by 4 BPS — the only increase among the top-5 MSAs.
Ninety-day delinquency on first mortgages was 0.92 percent, 9 BPS better than in the prior report — when the rate was at its lowest point since July 2006. The rate has fallen each month since it was 1.30 percent in October 2013.
The first mortgage rate was 1.31 percent in May 2013.
On second mortgages, delinquency dropped to 0.57 percent last month from 0.63 percent in April and 0.60 percent a year earlier.
