S&P/Experian Consumer Credit Default Indices Show Default Rates Continued To Fall In June 2018
The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate decreased three basis points from last month to 0.86%. Los Angeles and Dallas both showed higher default rates; Los Angeles was three basis points higher in June at 0.65%, and Dallas was four basis points higher at 0.84%. Similarly, the 47 basis point drop for Miami was the largest single-month drop for an MSA since June 2013, yet its default rate still remains elevated compared to levels seen last year. In the last month, the year-over-year rise in the consumer price index moved clearly above 2% and the Fed again raised its benchmark rate, the Fed funds rate, by a quarter percentage point.