The default rate for first mortgages was 1.25% in July, up from last month’s low point of 1.23%, while second mortgage defaults “remained flat since last month at its historic low of 0.54%.”
Consumer credit quality remains healthy as across most categories “default rates remain at or marginally above their historic lows,” says Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices, David Blitzer.
In addition all five cities saw increased default rates in July.
Miami saw the highest increase up 31 basis points from last month to 2.06%, followed by Chicago at 1.75%, up 16 basis points, New York nine basis points, Dallas by five and Los Angeles by three basis points.
Nonetheless “all five cities remain below default rates they posted a year ago, in July 2012," he said.