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Credit Default Rates Decrease in January

2015 HUD

In a report released Tuesday by S&P Dow Jones Indices and Experian, data from the S&P/Experian Consumer Credit Default Indices revealed a decline in default rates during the month of January.

The Indices are a comprehensive measure of changes in consumer credit defaults. The Indices are calculated based on data extracted from Experian's consumer credit database.

The national composite rate in January, 2014, was 1.34 percent, down marginally from the December rate of 1.35 percent.

"The severe weather conditions afflicting the country impacted economic activity," said David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices.

The default rate for first mortgages was 1.26 percent, slightly down from 1.27 percent in the previous month. The default rate for second mortgages  was posted at .72 percent for January, down .76 percent from December.

The report noted, “Overall economic activity is still subpar. Against this background, consumer default rates have stabilized at levels similar to those seen before the financial crisis.”