Consumer credit defaults reached new lows in September that were last seen prior to the recession, according to data released by S&P Dow Jones and Experian.
First mortgage default rates for consumers decreased from 1.40% in August to 1.36% in September. This rate has either gone down or been flat for nine consecutive months, which represents an overall positive sign for the housing industry. Meanwhile, at 0.64%, the second mortgage default rate also fell to the lowest amount in its eight-year history. A year ago, this index was sitting at 1.32%.
Another loan type looked at in the monthly report includes bank cards, which declined 7 basis points to a mark of 3.70%. Only the auto loan default rate increased, from 1.09% to 1.11%, month-over-month. Overall, the national composite was down month-over-month from 1.50% in August to 1.46% in September.