In April second mortgage default rates increased for the first time in at least five months, from 1.42% in March to 1.51%, according to the Standard & Poor’s and Experian Customer Credit Default Index.
S&P analysts said however that this deviation on what appeared to be a downward trend in both first and second mortgage default rates is to be expected and may not reverse previous gains.
They argue that during most economic recoveries there are differences to general trends “across loan classes and regions.”
In fact year-over-year second mortgage default rates decreased by 39.39% compared to April 2010.
Also, the first mortgage default rate decreased from 2.33% in March to 2.16% in April and a significant 41.75% on a year-over-year basis.
The bank card default rate also increased in April for the first time in 11 months but decreased by 35.45% year-over-year again indicating the recovery is still fragile.
The composite S&P/Experian Customer Credit Default index which includes the auto loan default rate in addition to mortgage and bank card data, varied across major cities and regions but consistently declined both month-to-month and year-over-year.
