Data through October 2014, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, continued to show an increase in default rates.  The national composite posted 1.06% in October, up two basis points from September 2014.  For the third consecutive month, the first mortgage default rate rose, to 0.96% in October.  Despite the rise, the second mortgage default rate declined to 0.47%.  The bank card rate continued its decline for the fourth consecutive month, declining by 3 basis points to a historical low of 2.60%.

"With the continued increase in the composite default rates, the overall movements have still been very small.  The continued six month upward trend in auto loan default rates does coincide with strong automobile sales over the same period.  Despite the small increases in default rates, bank card and second mortgage default rates are currently at historical lows," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices.  "Even with the increases, default rates are still much lower from their October 2013 rates."

"Dallas, Los Angeles and Miami all reported rate increases, with Dallas posting a default rate of 0.98%, its highest rate since March 2014.  Miami saw its first default rate increase since December 2013, up 5 basis points from September 2014 to 1.26%.  Lost Angeles continued its default rate increase for the third consecutive month, posting a rate of 0.84%, up 7 basis points from September 2014.  New York however, for the third straight month, posted a 6 basis point decrease to a historical low of 0.99%.  Despite the recent trend of composite rate increases, all five cities – Chicago, Dallas, Los Angeles, Miami and New York – still remain below default rates seen a year ago."

The table below summarizes the October 2014 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs: