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First and Second Mortgage Default Rates Decline for a Second Month
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You're Now Reading:
First and Second Mortgage Default Rates Decline for a Second Month
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
First and Second Mortgage Default Rates Decline for a Second Month
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March 21, 2012 (Jeff Alan)

Monthly default rates on first and second mortgages declined for the second consecutive month in February, helping to contribute to an overall decline in the S&P/Experian Consumer Credit Default Indices from 2.16 percent in January to 2.09 in February.

First mortgage default rates fell from 2.08 percent in January to 2.02 percent in February. It was the second consecutive month that first mortgage default rates have declined following four months of increases. Default rates on second mortgages also declined last month, falling from 1.30 percent in January to 1.20 percent in February.

Mortgage default rates have been steadily declining since 2009 when second mortgage default rates peaked at 4.66 percent in March, followed several months later by first mortgage defaults which peaked at 5.67 percent in August.

A year ago, the default rate on first mortgages was 2.45 percent and for second mortgages, the default rate was 1.46 percent.

Default rates on auto loans also declined falling from 1.27 percent in January to 1.22 percent in February while default rates on bank cards also continued to improve, decreasing from 4.57 percent in January to 4.41 percent in February.

David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices, stated, “It seems that 2012 has begun on a positive note for the consumer. We appear to be resuming the downward trend in consumer default rates that began in the spring of 2009. With last month’s release we reported that the second half of 2011 saw a rise in consumer defaults, led by four consecutive monthly increases in first mortgage default rates. January and February’s combined reports shows broad based declines in all types of default rates, which is a good way to start the year.”

Four of the five Metropolitan Statistical Areas (MSAs) saw default rates decline in the monthly Indices with Los Angeles posting the largest decline in default rates for the second consecutive month, falling 0.49 percentage points to 1.87 percent in February from 2.36 percent in January. In February 2011, the default rate in Los Angeles was 2.70 percent.

Miami posted the second largest decline, falling 0.26 percentage points to 4.54 percent in February from 4.80 percent in January. A year ago the default rate in Miami was 6.05 percent.

The default rate in New York declined by 0.19 percentage points to 2.04 percent in February from 2.23 percent in January and was also down from a year earlier when the default rate stood at 2.53 percent.

The smallest decline in default rates was recorded in Chicago, which fell 0.05 percentage points to 2.71 percent from 2.76 percent in January. In February 2011, the default rate in Chicago was 2.82 percent.

Dallas was the only MSA to post an increase last month, climbing from 1.53 in January to 1.61 percent in February. A year ago, the default rate in Dallas was 1.78 percent.

“The first mortgage default rate fell by six basis points in February, bringing this rate closer to the lows seen in the summer of 2011. Second mortgage and bank card default rates fell by even more during that month. In fact, both second mortgage and bank card default rates are their lowest in the three-year history of these data. While bank cards tend to have the highest default rate, at 4.41 % it is now less than half of the 9.15% recorded less than two years ago,” Blitzer added.

Tags: S&P, Experian, Consumer Credit Default Indices, mortgage default rates, auto loan default rates, bank card default rates

Source:
S&P/Experian

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March 21, 2012 (Jeff Alan)

Monthly default rates on first and second mortgages declined for the second consecutive month in February, helping to contribute to an overall decline in the S&P/Experian Consumer Credit Default Indices from 2.16 percent in January to 2.09 in February.

First mortgage default rates fell from 2.08 percent in January to 2.02 percent in February. It was the second consecutive month that first mortgage default rates have declined following four months of increases. Default rates on second mortgages also declined last month, falling from 1.30 percent in January to 1.20 percent in February.

Mortgage default rates have been steadily declining since 2009 when second mortgage default rates peaked at 4.66 percent in March, followed several months later by first mortgage defaults which peaked at 5.67 percent in August.

A year ago, the default rate on first mortgages was 2.45 percent and for second mortgages, the default rate was 1.46 percent.

Default rates on auto loans also declined falling from 1.27 percent in January to 1.22 percent in February while default rates on bank cards also continued to improve, decreasing from 4.57 percent in January to 4.41 percent in February.

David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices, stated, “It seems that 2012 has begun on a positive note for the consumer. We appear to be resuming the downward trend in consumer default rates that began in the spring of 2009. With last month’s release we reported that the second half of 2011 saw a rise in consumer defaults, led by four consecutive monthly increases in first mortgage default rates. January and February’s combined reports shows broad based declines in all types of default rates, which is a good way to start the year.”

Four of the five Metropolitan Statistical Areas (MSAs) saw default rates decline in the monthly Indices with Los Angeles posting the largest decline in default rates for the second consecutive month, falling 0.49 percentage points to 1.87 percent in February from 2.36 percent in January. In February 2011, the default rate in Los Angeles was 2.70 percent.

Miami posted the second largest decline, falling 0.26 percentage points to 4.54 percent in February from 4.80 percent in January. A year ago the default rate in Miami was 6.05 percent.

The default rate in New York declined by 0.19 percentage points to 2.04 percent in February from 2.23 percent in January and was also down from a year earlier when the default rate stood at 2.53 percent.

The smallest decline in default rates was recorded in Chicago, which fell 0.05 percentage points to 2.71 percent from 2.76 percent in January. In February 2011, the default rate in Chicago was 2.82 percent.

Dallas was the only MSA to post an increase last month, climbing from 1.53 in January to 1.61 percent in February. A year ago, the default rate in Dallas was 1.78 percent.

“The first mortgage default rate fell by six basis points in February, bringing this rate closer to the lows seen in the summer of 2011. Second mortgage and bank card default rates fell by even more during that month. In fact, both second mortgage and bank card default rates are their lowest in the three-year history of these data. While bank cards tend to have the highest default rate, at 4.41 % it is now less than half of the 9.15% recorded less than two years ago,” Blitzer added.

Tags: S&P, Experian, Consumer Credit Default Indices, mortgage default rates, auto loan default rates, bank card default rates

Source:
S&P/Experian

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
LOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at LoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

March 21, 2012 (Jeff Alan)

Monthly default rates on first and second mortgages declined for the second consecutive month in February, helping to contribute to an overall decline in the S&P/Experian Consumer Credit Default Indices from 2.16 percent in January to 2.09 in February.

First mortgage default rates fell from 2.08 percent in January to 2.02 percent in February. It was the second consecutive month that first mortgage default rates have declined following four months of increases. Default rates on second mortgages also declined last month, falling from 1.30 percent in January to 1.20 percent in February.

Mortgage default rates have been steadily declining since 2009 when second mortgage default rates peaked at 4.66 percent in March, followed several months later by first mortgage defaults which peaked at 5.67 percent in August.

A year ago, the default rate on first mortgages was 2.45 percent and for second mortgages, the default rate was 1.46 percent.

Default rates on auto loans also declined falling from 1.27 percent in January to 1.22 percent in February while default rates on bank cards also continued to improve, decreasing from 4.57 percent in January to 4.41 percent in February.

David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices, stated, “It seems that 2012 has begun on a positive note for the consumer. We appear to be resuming the downward trend in consumer default rates that began in the spring of 2009. With last month’s release we reported that the second half of 2011 saw a rise in consumer defaults, led by four consecutive monthly increases in first mortgage default rates. January and February’s combined reports shows broad based declines in all types of default rates, which is a good way to start the year.”

Four of the five Metropolitan Statistical Areas (MSAs) saw default rates decline in the monthly Indices with Los Angeles posting the largest decline in default rates for the second consecutive month, falling 0.49 percentage points to 1.87 percent in February from 2.36 percent in January. In February 2011, the default rate in Los Angeles was 2.70 percent.

Miami posted the second largest decline, falling 0.26 percentage points to 4.54 percent in February from 4.80 percent in January. A year ago the default rate in Miami was 6.05 percent.

The default rate in New York declined by 0.19 percentage points to 2.04 percent in February from 2.23 percent in January and was also down from a year earlier when the default rate stood at 2.53 percent.

The smallest decline in default rates was recorded in Chicago, which fell 0.05 percentage points to 2.71 percent from 2.76 percent in January. In February 2011, the default rate in Chicago was 2.82 percent.

Dallas was the only MSA to post an increase last month, climbing from 1.53 in January to 1.61 percent in February. A year ago, the default rate in Dallas was 1.78 percent.

“The first mortgage default rate fell by six basis points in February, bringing this rate closer to the lows seen in the summer of 2011. Second mortgage and bank card default rates fell by even more during that month. In fact, both second mortgage and bank card default rates are their lowest in the three-year history of these data. While bank cards tend to have the highest default rate, at 4.41 % it is now less than half of the 9.15% recorded less than two years ago,” Blitzer added.

Tags: S&P, Experian, Consumer Credit Default Indices, mortgage default rates, auto loan default rates, bank card default rates

Source:
S&P/Experian

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
LOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.