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A Look at First-Lien Mortgage Defaults

Releasing data covering August 2022, Standard & Poor (S&P) and Experian published its monthly Consumer Credit Default Indices Report which intends to represent a “comprehensive measure” of changes in consumer credit defaults. 

Of the three components of the report, the rate of default for first-lien mortgages remained steady at 0.42%; this number is up from August 2021 when the rate was 0.27%. The credit card default rate fell three basis points to 2.41% up from 2.35% a year ago, and the auto loan default rate was six basis points higher at 0.72% (up from 0.34% last year) resulting in a composite score of 0.57%. 

The composite score has also risen from 0.39% in August 2021. 

Three of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Dallas had the largest increase, up seven basis points to 0.69%. Miami and Chicago each rose three basis points, to 1.16% and 0.70% respectively. New York and Los Angeles each dropped seven basis points, to 0.58% and 0.45% respectively.

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].

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