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Default rates across four categories were down in August, hitting their lowest rates since the end of the 2007/2009 recession, according to data from the S&P/Experian Consumer Credit Default Indices.
[IMAGE] [COLUMN_BREAK]The first mortgage default rate ticked lower to 1.40 percent in August from 1.41 percent in July. In August 2011, the default rate was 1.92 percent.
The second mortgage default rate fell month-over-month to 0.72 percent from 0.75 percent in July, the lowest in its eight-plus year history. The rate was also down significantly from 1.27 percent a year ago.
""For the housing market, there are still a substantial number of loans outstanding that defaulted in the past and that segment of the market is still of concern. But for 2012, the drop in mortgage default rates is a good sign for the housing market and the consumer,"" said David M. Blitzer, managing director and chairman of the Index Committee for ""S&P Dow Jones Indices"":http://www.spdji.com/.
The rate for bank card defaults saw the biggest drop, hitting 3.77 percent in August from July's 3.83 percent. The composite index saw a slight drop to 1.50 percent from 1.51 percent in July.
The default rate for auto loans was the only category that saw an increase.
