NEW YORK, Jan. 17, 2017 /PRNewswire/ -- Data through
December 2016, 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, shows the nation's composite rate up
two basis points from last month at 0.89% in December. The bank
card default rate recorded a 2.95% rate, up 14 basis points from
November. Auto loan defaults came in at 1.03%, up three basis
points from the previous month. The first mortgage default rate
came in at 0.71%, up one basis point from November.
Four of the five major cities saw their default rates increase
in the month of December. Miami
had the largest increase, reporting 1.53%, up nine basis points
from November. Chicago and
Los Angeles both reported two
basis point increases from last month at 0.98% and 0.72%,
respectively, in December. Dallas
saw its default rate increase, up one basis point, to 0.67%.
New York was the only city
reporting a default rate decrease of four basis points from last
month at 0.87%.
Miami's default rate of 1.53%
in December sets a 30-month high, unseen since June 2014. Upon further analysis of Miami's default rate composition, Miami's first mortgage default rate in
December is considerably higher than the south's first mortgage
default rate and the national first mortgage default rate. It's
worth noting that the south's first mortgage default rate is higher
than the national default rate.
"National average consumer credit default rates continue at low
levels in an improving economy," says David
M. Blitzer, Managing Director and Chairman of the Index
Committee at S&P Dow Jones Indices. "Auto and light truck sales
were up each month since August as automobile consumer credit
defaults held steady. Bank card sector defaults ticked up slightly
in the last two months, reversing five months of flat to down
reports. This may reflect rising retail since the spring and larger
consumer credit extensions in October and November. As shown in the
chart, nationally, mortgage default patterns are also stable. This
favorable picture is likely to be tested by rising interest rates;
home mortgage rates rose by three-quarters of one percent since
Election Day.
"Consumer credit default rates and economic conditions vary
across the country. Among the five cities reported on each month,
Miami has a larger and increasing
first mortgage foreclosure rate. Home prices in Miami, as in most cities, have recovered from
the financial crisis. However, Miami home prices, as measured by the S&P
CoreLogic Case-Shiller Home Price Index, as of October 2016 were 22% below their December 2006 peak, while nationally, home prices
have recently surpassed the pre-crisis peak set in July 2006. Florida also lags national trends in other
measures – it is among the five states with the most foreclosures
in 2016."
The table below summarizes the December
2016 results for the S&P/Experian Credit Default
Indices. These data are not seasonally adjusted and are not subject
to revision.
S&P/Experian
Consumer Credit Default Indices
|
|
National
Indices
|
|
Index
|
December
2016
Index Level
|
November
2016
Index Level
|
December
2015
Index Level
|
|
|
Composite
|
0.89
|
0.87
|
0.97
|
|
First
Mortgage
|
0.71
|
0.70
|
0.84
|
|
Second
Mortgage
|
0.41
|
0.48
|
0.67
|
|
Bank Card
|
2.95
|
2.81
|
2.49
|
|
Auto Loans
|
1.03
|
1.00
|
1.04
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through December
2016
|
|
|
|
|
|
|
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical
Area
|
December
2016
Index Level
|
November
2016
Index Level
|
December
2015
Index Level
|
|
|
New York
|
0.87
|
0.91
|
1.04
|
|
Chicago
|
0.98
|
0.96
|
1.00
|
|
Dallas
|
0.67
|
0.66
|
1.10
|
|
Los
Angeles
|
0.72
|
0.70
|
0.65
|
|
Miami
|
1.53
|
1.44
|
1.44
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through December
2016
|
|
|
|
|
|
|
|
|
|
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
ABOUT S&P DOW JONES
INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P 500® and
the Dow Jones Industrial Average®. More assets are invested in
products based on our indices than based on any other provider in
the world. With over 1,000,000 indices and more than 120 years of
experience constructing innovative and transparent solutions,
S&P Dow Jones Indices defines the way investors measure and
trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information, visit www.spdji.com.
About Experian
We are the leading global information services company, providing
data and analytical tools to our clients around the world. We help
businesses to manage credit risk, prevent fraud, target marketing
offers and automate decision making. We also help people to check
their credit report and credit score and protect against identity
theft. In 2015, we were named one of the "World's
Most Innovative Companies" by Forbes magazine.
We employ approximately 17,000 people in 37 countries and our
corporate headquarters are in Dublin,
Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and
is a constituent of the FTSE 100 index. Total revenue for the year
ended March 31, 2016, was
US$4.6 billion.
To find out more about our company, please visit
http://www.experianplc.com or watch our documentary, "Inside
Experian."
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
FOR MORE INFORMATION:
David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
david.blitzer@spglobal.com
Luke Shane
Manager Communications
New York, USA
(+1) 212 438 8184
luke.shane@spglobal.com
Matt Tatham
Experian Public Relations
917 446 7227
matt.tatham@experian.com
Jointly developed by S&P Dow Jones Indices LLC and Experian,
the S&P/Experian Consumer Credit Default Indices are published
on the third Tuesday of each month at 9:00
am ET. They are constructed to track the default experience
of consumer balances in four key loan categories: auto, bankcard,
first mortgage lien and second mortgage lien. The Indices are
calculated based on data extracted from Experian's consumer credit
database. This database is populated with individual consumer loan
and payment data submitted by lenders to Experian every month.
Experian's base of data contributors includes leading banks and
mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from
11,500 lenders.
For more information, please visit:
www.consumercreditindices.standardandpoors.com .
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bank-card-default-rate-rises-in-december-2016-according-to-spexperian-consumer-credit-default-indices-300391856.html
SOURCE S&P Dow Jones Indices