DEC 17, 2013 11:51am ET

First Mortgage Default Rate Improves Two Basis Points from October

Print
Reprints
Email

November’s first mortgage default rate was down two basis points from October and 30 basis points from November 2012, according to the S&P/Experian Consumer Credit Default Indices.

The composite default rate, which includes second mortgages, bank cards and auto loans, fell one basis point from last month and 27 bps from November 2012.

However, second mortgage defaults increased six bps over October and 16 bps over last year.

Consumer credit quality remains healthy, with the indices remaining at levels they were at prior to the financial crisis, says David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.

The percentage of disposable income that consumers need to make to cover the interest on their debts reached a record low. The amount of mortgage debt outstanding continues to decline, plus improvements in the economy and in unemployment have also helped to keep debt low, he says.
In November, the composite index was at 1.37%, while first mortgages were 1.28% and second mortgages were 0.78%.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Already a subscriber? Log in here
Please note you must now log in with your email address and password.