Consumer credit default rates fell in March 2012 for the third consecutive month, according to the latest indices from S&P/Experian.
The national composite declined to 1.96% in March from the 2.09% February rate.
For mortgages, the first mortgage default rate dropped month-over-month to 1.88% from 2.02%, while second mortgage defaults is experienced a fall from 2.2% to 1.03%.
Auto loans also were lower in March to 1.11% from 1.22% the previous month.
Bank card loans were the only category where default rates increased in March to 4.47% from 4.41% in February.
“The first quarter of 2012 was largely positive for the consumer,” said David Blitzer, managing director and chairman of the index committee for S&P Indices. “Not only have we resumed the downward trend in consumer default rates that began in the spring of 2009, but we appear to be reaching new lows across most loan types. The first three months of 2012 show broad based declines in default rates with first and second mortgage, auto and composite default rates all reaching post-recession lows.”
Four of the five cities covered by S&P/Experian in this index saw their default rates drop, too. For the third straight month, Chicago experienced a fall in consumer default rates and is now at 2.35%. This is nearly 50-basis points lower than three months ago.
Dallas retains the lowest rate among the five cities tracked by the index with defaults moving down from 1.61% in February to 1.44% in March.
New York and Miami also both fell for the second consecutive month. New York decreased slightly from 2.04% in February to 2.01% in March, while Miami dropped almost a full percentage point from 4.54% in February to 3.62% in March.
“While it still remains the highest default rate, Miami is the other city to hit a post-recession low,” Blitzer added.
Los Angeles was the only city where default rates marginally rose, from 1.87% to 1.88%.
