Mortgage default rates decreased in September, pushing the composite rate down seven basis points to 0.89%, according to the S&P/Experian Consumer Credit Default Indices.
The first-mortgage default rate declined by 8 basis points to 0.76% since August, while the second-mortgage default rate dropped 10 basis points to 0.47%.
"Default rates on consumer credit and mortgage borrowing are fairly stable and close to the lowest levels seen in the last 10 years," said David Blitzer, head of the S&P Dow Jones Index Committee, in an Oct. 20 news release.
While the percentage of income consumers are using to pay off debt also is hitting rock-bottom levels, consumer debt outstanding is going up, he said.
"Increases in spending and rising home sales are contributing to the growth in credit outstanding," said Blitzer.
Default rates for other types of consumer credit rose in September. For bank cards, it rose 6 basis points to 2.77%, while a 2-basis-point increase drove the auto loan default rate up to 0.92%.
But out of five major cities — including New York, Chicago and Los Angeles — tracked by S&P/Experian, none saw their overall consumer credit default rates rise from August levels. However, the changes varied: the default rate in Dallas stayed steady at 0.71%, while at the other end of the scale, Miami's dropped 39 basis points to 1.07%.
