August 25, 2015 12:48 am
The first mortgage default rate remained unchanged at 0.80 percent. The second mortgage default rate also remained unchanged at 0.55 percent. The auto loan default rate increased to 0.86 percent, and the bank card default rate decreased to 2.79 percent.
“The stable consumer credit default rates confirm the recent economic improvements seen in the unemployment rate and GDP growth,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Recent increases in outstanding consumer credit combined with stable default rates and strong consumer sentiment point to stable individual financial conditions. However, wage increases are running at about 2 percent annually–or under 1 percent after inflation–which means that there is little margin for error should the economy stumble. At the same time, concerns over the impact of an expected Federal Reserve rate increase are exaggerated. Interest rates on consumer loans are unlikely to be affected and no immediate economic fallout is anticipated.”
Source: S&P Dow Jones Indices
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