Mortgage Defaults Rise in November

December 24, 2010 (Jeff Alan)
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Standard & Poor’s/Experian Consumer Credit Default report for December, released on Tuesday, showed a rise in monthly default rates for first and second mortgages to 3.05% and 1.80% in November 2010. It was the first time since December 2009 that the index has risen, although the year-over-year decline is 38.84 percent.

Overall, consumer credit such as car loans and credit card debt defaults declined. Consumer credit defaults varied across major cities and regions of the U.S.

Of the five major metropolitan areas tracked in the report, only Dallas had a declining default rate of 2.20 percent. Los Angeles and Chicago defaults were up 3.25 percent and 3.34 percent, respectively. Miami had the largest default rate at 10.26 percent.

“The deterioration in the mortgage sector may be temporary as rates of new defaults have been declining for over a year with occasional brief interruptions, says David Blitzer, Experian managing director.”

“The figures for five leading metropolitan areas confirm key housing trends found in other S&P reports. Los Angeles is experiencing the beginning of stability in housing while Miami, and much of Florida, continue to face credit default concerns.”

Tags: mortgage defaults, default rates, consumer credit default, mortgage sector, housing stability