The downward trend of first mortgage default rates continued in June. After eight consecutive months dropping, it reached .89% in June, according to the S&P/Experian Consumer Credit Default Indices. It was .92% in May and 1.24% the same month a year before.
For May and June, the second mortgage default rate froze at .57, marking an increase from the .54 level in 2013.
June was also marked by the lowest national composite posted (1.02%), with no such low default rate in more than a decade.
According to the managing director and chairman of the index committee for S&P Dow Jones Indices David Blitzer, a historic low has been reached in consumer credit default rates, which will continue to drop.
With the lowest unemployment rate in six years and an increase in the number of jobs, recent economic reports appear promising. The improvement in economy is also proved by the continued decline in consumer default rates. The strict standards for mortgage loans also contribute to keeping the first mortgage default rates low.
Dallas was the only city with an increase in the default rate, with 0.87% in June. By contrast, LA, Miami, New York and Chicago have had the lowest default rates since the beginning of the 2008 recession.