Data throughJuly 2011, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed that second mortgages default rates experienced the largest decrease in July from 1.40% to 1.25%. First mortgage and bank card default rates decreased to 1.93% and 5.64%, respectively, from June rates of 2.02% and 5.69%. Auto loan default rate went down slightly from 1.29% in June to 1.27% in July.

"By and large, July's data support the downward trend we have observed over the past two years. Despite high unemployment rates, consumers continue to improve their financial positions, resulting in lower default rates than we were seeing during the recession," saysDavid M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. "All indices show default rates well below where they were in 2008 and 2009. However, occasional increases in some of the regional composites suggest that default rates may not fall a lot farther. While recording the highest default rate of the five cities we report,Miamiis still far off the near-19% it had reported two years ago. However, the sluggish economies in bothMiamiandChicagoappear to be having a more severe impact on their residents than some of the other markets. Recent housing data has also pointed to weakness in these two markets beyond the national averages."

Consumer credit defaults varied across major cities in the U.S. Among the five major Metropolitan Statistical Areas (MSAs) reported in this release each month,Dallasexperienced a small increase in default rates, from 1.59% in June to 1.60% in July.Los AngelesandMiamidecreased moderately to 2.15% and 5.37%, respectively from 2.17% and 5.41%.New YorkandChicagosaw default rates decrease to 1.80% and 2.54% in July, from 1.82% and 2.59% in June, respectively.