New data out from S*P and Experian says consumers are doing a better job paying their bills.
The national composite of consumer defaults hit its post-recession low of 1.42% in April, down from 1.50% in March. The first mortgage default rate moved down to 1.31% in April from 1.41% in March. The auto loan default rate posted a 1.07% rate in April, down from its 1.11% March level. The bank card default rate increased in April, it posted 3.61% in April vs. 3.51% in March.
David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices said, “Continued improvements in the economy and declining consumer debt are resulting in lower consumer default rates for mortgages and automobiles. Bank cards, where default patterns are more volatile, saw a small uptick in the latest month. While unemployment remains elevated, these data suggest that for many consumers the recession is definitely behind us.
Five cities saw lower default rates in April. Chicago, Los Angeles and Miami hit new post-recession lows. Miami was down by 0.72 percentage points since March and 1.00 percentage point since February 2013. Dallas was down by 0.20 percentage points, Chicago by 0.14, and Los Angeles by 0.12 percentage points. New York was marginally down by 0.01 percentage point. Miami had the highest default rate at 2.21% and Dallas – the lowest at 1.00% among the five cities. All five cities remain below default rates they posted a year ago, in April 2012.”
According to supplied data the default rate for bank cards was 3.61% in April, 2013 and 4.49% for the same period a year ago.
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