Household debt continued to fall in July as the first mortgage default rate dropped to .88% from .89% last month, according to the S&P/Experian Consumer Credit Default Indices.
This is significantly down from 1.35% in July 2014.
“At just above one percent, default rates remain at historical lows. Mortgage default rates have been trending down while Auto and Bank Card are a bit higher than their historical lows set in April and March,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.
The second mortgage default rate slipped to .52%, down from .57% last month and .54% a year ago.
As a whole, the national composite hit 1.01% in July, down one basis point from last month and lowest level in over 10 years.
On the other side, non-housing debt increased slightly in the second quarter.
Auto saw its rate remain unchanged at 0.96%, falling only four basis points above its historical low, while the bank card rate declined 16 basis points to 2.86%.