Defaults on mortgages, credit cards, and auto loans dropped for the seventh straight month in July, according to data from a leading index on credit default.
S&P Dow Jones Indices and credit rating agency Experian reported on Aug. 21 that four of the five loan types tracked through the S&P/Experian Consumer Credit Default Indices posted their lowest rates since the Great Recession ended in 2009. The only loan type to see even a marginal increase in defaults was second mortgages.
The speed of the decreases in default rates has slowed since the beginning of the year and varied across the country. Of the five metropolitan areas surveyed by the index, default rates in Miami and New York continued to decrease, rates in Los Angeles and Dallas slightly increased in July. Chicago’s rate remained flat.