NEW YORK -

After setting new historic lows in March and April, the auto loan rate associated with the S&P/Experian Consumer Credit Default Indices increased marginally in May.

S&P Dow Jones Indices and Experian determined the auto loan default rate ticked up just 1 basis point to 0.93 percent.

Meanwhile, the national composite rate — a comprehensive measure of changes in consumer credit defaults — came in at 1.04 percent in May, the lowest default rate since May 2006.

In other credit segments analysts track for this monthly report, the bank card rate jumped to 2.97 percent in May, 13 basis points higher than the prior month. The first mortgage default rate continued its downward trend from 1.30 percent in October of last year to 0.92 percent in May.

“Consumer credit default rates decreased for their seventh consecutive month,” said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices.

“The national composite is now only one basis point above its historic low,” Blitzer continued. “Mortgage default rates saw the biggest decline when compared to auto and bank card rates.

“Although historically low default rates are welcome, some home buyers may have difficulty qualifying for mortgages. Last year saw a surge in home prices but we are seeing signs of slowing gains this year. One question is whether banks are willing to make mortgage loans as home prices rise faster than incomes,” he went on to say.

Looking at the top five cities S&P Dow Jones Indices and Experian watches, Dallas’ default rate dropped to a new historic low of 0.77 percent.

“New York was the only city to see its default rate increase but it showed the largest drop-off from one year ago,” Blitzer said. “Chicago, Los Angeles and Miami are at their lowest default rates since the start of the last recession.”

Miami continues to maintain the highest default rate of the five cities at 1.74 percent in May.

“All five cities — Chicago, Dallas, Los Angeles, Miami and New York — remain below default rates seen a year ago,” Blitzer said.

Jointly developed by S&P Indices and Experian, Blitzer reiterated the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately 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.