Although serious delinquency on first and second mortgages maintained from the prior month, deterioration was noted in the second-mortgage rate from a year earlier.
Ninety-day delinquency on all types of consumer credit — including auto loans, bank cards and first and second mortgages — was 0.92 percent as of July.
The 90-day rate improved over the previous month by a single basis point, while the year-over-year improvement was nine BPS.
The performance metrics were discussed in the
S&P/Experian Consumer Credit Default Indices released by S&P Dow Jones Indices and Experian.
“Recent increases in outstanding consumer credit combined with stable default rates and strong consumer sentiment point to stable individual financial conditions,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, stated in the release. “However, wage increases are running at about 2 percent annually – or under 1 percent after inflation – which means that there is little margin for error should the economy stumble.
“At the same time, concerns over the impact of an expected Federal Reserve rate increase are exaggerated. Interest rates on consumer loans are unlikely to be affected and no immediate economic fallout is anticipated.”
In
Dallas, the 90-day composite rate was 0.64 percent, four BPS less than in June and the only one of five of the largest metropolitan statistical areas to improve from a month earlier. Dallas’ rate was the lowest of the five biggest cities.
An 11-basis-point deterioration experienced in Chicago, where the rate was 1.15 percent, was the biggest increase.
In Miami, the rate was up three BPS to 1.45 percent — the highest rate among the five MSAs.
On just the nation’s collective first mortgage portfolio,
90-day delinquency was 0.80 percent in July.
That was no different than in the prior report, but it was better than 0.88 percent in the year-earlier report.
It was the same month-over-month comparison for second mortgages, with the serious delinquency rate remaining at 0.55 percent.
However, the second-mortgage rate was
worse than 0.52 percent in July 2014.
