Mortgage Default Rates Improve Slightly in March

The default rate on first mortgage loans improved seven basis points between February and March, with second mortgages improving by two basis points, according to the S&P/Experian Consumer Credit Default Indices.

The composite index for March was 1.5%, a five basis point improvement from February and a 46 basis point improvement from March 2012. Included in the composite are bank credit cards and auto loans. The data is not seasonally adjusted.

For first mortgage loans, the index ended March at 1.41%, compared with 1.48% in February and 1.88% in March 2012. The second mortgage index was 0.69% in March, compared with 0.71% in February and 1.03% in March 2012.

S&P/Experian provides composite default data for five major U.S. cities. Of the five, only New York saw an increase in the default rate between February and March, up 38 basis points to 1.79%.

Although Miami saw a 28 basis point improvement on a month-to-month basis, it is still the city with the highest default rate at 2.93%.