Default rates for first mortgages improved by 125 basis points in June over the same month last year, while for second mortgages, late payments were better by 101 basis points, according to the S&P/Experian Consumer Credit Default Indices.
When compared to May, first mortgages show a seven basis point improvement, while second mortgages have a two basis point recovery.
The composite index, which also includes bank cards and auto loans, improved by seven basis points between May and June and by 130 basis points over June 2010. The figures are not seasonally adjusted.
The report highlighted loans in the nation's four largest metropolitan areas, plus Miami.
While all five — the others being New York, Chicago, Dallas and Los Angeles — showed year-over-year improvement in their default rates, only New York and Los Angeles had better loan performance in June over May.
David Blitzer, managing director and chairman of the index committee for S&P Indices, said the lingering effects of the housing bust are still affecting credit performance in Miami. The June index in that city is 5.41, compared to 5.31 in May and 8.53 in June 2010.
