S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW EIGHTH CONSECUTIVE RISE IN COMPOSITE RATE IN JULY 2022

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First Mortgage Default Rate Reaches Highest Level Since September 2020

According to the latest data from S&P Dow Jones Indices and Experian, the first mortgage default rate increased by four basis points to 0.42% in July 2022. The composite default rate rose to 0.57%, marking an increase for the eighth consecutive month. Key metropolitan areas such as Miami saw the largest rise at 1.13%, while New York's rate fell to 0.65%. These trends indicate growing risks in consumer credit markets.

Positive

• Bank card default rate decreased by 11 basis points to 2.44%.
• Composite default rate rose only four basis points despite overall increases.

Negative

• First mortgage default rate increased to 0.42%, reflecting potential rising credit risks.
• Four out of five major metropolitan areas reported increased default rates.

First Mortgage Default Rate at Highest Since September 2020

NEW YORK, Aug. 16, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through July 2022 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate rose four basis points to 0.57%. The bank card default rate fell 11 basis points to 2.44%. The auto loan default rate was four basis points higher at 0.66% while the first mortgage default rate was up four basis points to 0.42%.

Four of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami had the largest increase, up 14 basis points to 1.13%. Chicago rose nine basis points to 0.67%. Los Angeles was six basis points higher, at 0.52%, while Dallas increased five basis points to 0.62%. New York dropped six basis points to 0.65%.

The table below summarizes the July 2022 results for the S&P/Experian Consumer Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

Index Levels – National Indices
Index	July 2022	June 2022	July 2021
Composite	0.57	0.53	0.40
First Mortgage	0.42	0.38	0.27
Bank Card	2.44	2.55	2.51
Auto Loans	0.66	0.62	0.31
Source: S&P/Experian Consumer Credit Default Indices
Data through July 2022

 

The table below provides the index levels for the five major MSAs tracked by the S&P/Experian Consumer Credit Default Indices.

Index Levels – Major MSAs
MSA	July 2022	June 2022	July 2021
New York	0.65	0.71	0.42
Chicago	0.67	0.58	0.39
Dallas	0.62	0.57	0.40
Los Angeles	0.52	0.46	0.36
Miami	1.13	0.99	0.91
Source: S&P/Experian Consumer Credit Default Indices
Data through July 2022

 

For more information about S&P Dow Jones Indices, please visit www.spglobal.com/spdji/en/.

ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES

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.spindices.com/indices/indicators/sp-experian-consumer-credit-default-composite-index.

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 products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing across the spectrum of asset classes helping to define 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.spglobal.com/spdji/en/.

ABOUT EXPERIAN

Experian is the world's leading global information services company. During life's big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have 20,600 people operating across 43 countries and every day we're investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian. Other product or company names mentioned herein are the property of their respective owners.

FOR MORE INFORMATION:
spdji.comms@spglobal.com

April Kabahar
Head of Communications
S&P Dow Jones Indices
New York, USA
(+1) 917 796 3121
april.kabahar@spglobal.com

Lauren Davis
Americas Communications
S&P Dow Jones Indices
New York, USA
(+1) 484 269 7118
lauren.davis@spglobal.com

Annie Russell
Experian Public Relations
(+1) 714 830 7927
annie.russell@experian.com

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SOURCE S&P Dow Jones Indices

FAQ

What is the current first mortgage default rate for EXPGY and SPGI?

As of July 2022, the first mortgage default rate is 0.42%.

How has the composite default rate changed for EXPGY and SPGI?

The composite default rate increased to 0.57%, which is an eight-month rise.

Which metropolitan area saw the highest increase in default rates for July 2022?

Miami had the largest increase in default rates, rising to 1.13%.

What does the recent data on credit defaults indicate for SPGI and EXPGY?

The increase in default rates suggests growing risks in consumer credit markets.

How did the bank card default rate change in July 2022?

The bank card default rate fell by 11 basis points to 2.44%.