Last month’s rate of serious mortgage delinquency moved lower and has shown improvement now for three consecutive months. Miami’s drop was biggest.
Based on the Composite Consumer Credit Default Index, delinquency of at least 90 days on consumer credit worked out to 0.86 percent in June.
The rate– which reflects the performance of automobile loans, bank cards and first and second mortgages — retreated 3 basis points from one month previous.
But consumer credit performance deteriorated versus one year prior, when the rate was 0.82 percent.
The performance metrics from S&P Dow Jones Indices and Experian were reported Tuesday.
“The favorable economic conditions consumers enjoyed in the last few years are confirmed by more than the current low levels of consumer credit default rates,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in the report. “Unemployment was falling to 4 percent or lower, inflation barely crept up after touching zero in 2015, and real (inflation adjusted) earnings rose as wages outpaced inflation. The ratio of household debt service to disposable income stayed close to the lowest levels in three decades.”
The composite index was 2.30 percent in Miami, sinking from May by 47 BPS — the most of any of the five major metropolitan statistical areas reported.
Los Angeles’ 0.65 percent rate was the lowest but 3 BPS worse than the preceding report.
Dallas saw the biggest month-over-month increase: 4 BPS to 0.84 percent.
The U.S. 90-day rate on first mortgages concluded June at 0.63 percent. Serious mortgage delinquency declined 3 BPS from a month earlier. The rate has improved each month since March, when it was 0.72 percent.
But the rate worsened from 0.60 percent a year earlier.
