Fewer Homeowners Defaulting on Debt
(NEW YORK) — Consumer default rates dropped in March, suggesting that fewer Americans are falling behind on home auto and credit card payments.
“The first quarter of 2013 shows healthy consumer credit quality,” said economist David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.
“The first and second mortgage default rates decreased,” he said, adding that overall “it looks quite good. We don’t have a situation like we had at the peak of the financial crisis of foreclosures ramping up continuously.”
How does consumer credit worthiness compare now with 2005 when economic growth was fairly strong? According to Blitzer, “the consumer credit situation is as good or better as it was way back then.”
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