Last month, serious delinquency deteriorated on both first mortgages and second mortgages. At the same time, mortgage debt outstanding has been expanding.
Ninety-day delinquency on consumer credit came in at a rate of 0.87 percent as of October. The past-due rate worsened by 3 basis points from a month earlier.
Serious consumer delinquency — which reflects the performance of
auto loans, bank cards and first and second mortgages — fell by 7 BPS from a year earlier.
The findings are based on the S&P/Experian Composite Consumer Credit Default Index.
In the Chicago metropolitan statistical area, last month’s composite index was 0.97 percent, surging from September by 10 BPS — the biggest month-over-month increase of the five-largest MSAs.
While the Miami MSA saw a 6-basis-point decline, its 1.06 percent rate as of October was still the highest of the five MSAs.
At 0.62 percent, the Los Angeles MSA had the lowest rate, though that was 3 BPS worse than in September.
The report indicated that 90-day delinquency on U.S. first mortgages was 0.70 percent as of Oct. 31. Although the rate deteriorated from 0.67 percent the prior month, it was down 11 BPS from a year prior.
Serious second-mortgage delinquency landed last month at 0.58 percent. The rate was up 2 BPS from September and from October 2015.
“Consumer credit and mortgage debt outstanding are rising and economic growth picked up in the third quarter,” David M. Blitzer, managing director and chairman of S&P Dow Jones Indices’ index committee, said in the report. “These positive signs are accompanying small increases in the consumer credit default rates.”