Bankcard and mortgage default rates hit new lows

The August 2012 edition of the S&P/Experian Consumer Credit Default Indices showed that bankcard, first-mortgage and second-mortgage default rates hit new post recession lows.

The first mortgage default rate decreased slightly, from 1.41 percent in July to 1.40 percent in August, and has been down or flat for eight consecutive months. The second-mortgage default rate fell to the lowest in its eight-plus-year history, reaching 0.72 percent. Bankcard default rates fell the most in August, from July’s 3.83 percent to 3.77 percent, the lowest rate in five years.

Listen to our recorded Webinar on consumer credit trends from the Q2 2012 Experian–Oliver Wyman Market Intelligence Reports, including bankcard trends and an in-depth look at the current state of the U.S. real-estate market.

Source: Press release: Consumer Credit Default Rates Remain Near Recent Lows in August 2012.