SANTA ANA, Calif.—Consumer default rates have risen, but just barely, from historic lows in the S&P/Experian Consumer Credit Default Indices.
The analysis found the national composite rate in September to be 1.04%, up just a tick from the record low 1.01% in July. The uptick was caused in part by a small increase in the first mortgage default rate, which rose to 0.93%, the second consecutive month it has increased.
The bank card rate, however, decreased by 10 basis points to 2.63%. Geographically, Chicago, Dallas, New York and Miami all reported rate decreases, with Miami posting a default rate of 1.21%--its lowest rate since June 2006 and New York posting a default rate of 1.05%, its lowest since September 2005. Los Angeles for the second consecutive month posted a rate increase of 0.77%, up 11 basis points from its historical low in July 2014. All 5 cities--Chicago, Dallas, Los Angeles, Miami and New York--remain below default rates seen a year ago, according to the company.