Skip to main content

First Mortgage Default Rate Drops to 1.58 Percent in January, While Seconds Remain Unchanged

NationalMortgageProfessional.com
Feb 20, 2013

Data through January 2013, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed a decrease in national default rates during the month. The national composite was 1.63 percent in January 2013, down from 1.72 percent in December 2012. The first mortgage default rate moved down to 1.58 percent in January, from 1.68 percent in December. The second mortgage rate was unchanged at 0.69 percent since December. Auto loan default rates increased marginally in January posting 1.10 percent, up from the 1.09 percent December level. The bank card default rate hit the lowest post-recession pace of 3.41 percent in January; it was 3.53 percent in December. “The beginning of 2013 continued the positive trend in consumer credit quality that we witnessed in 2012”, says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “The first mortgage and bank card default rates moved down, the second mortgage remained flat and auto loans were marginally up in January. All loan types remain below their respective levels a year ago. “The national composite rate was 1.63 percent in January 2013, nine basis points below the December 2012 rate. It was primarily driven by the first mortgage rate, which was at 1.58 percent in January, 10 basis points below the previous month. Three of the five cities we cover showed decreases in their default rates in January-Chicago, was down by five basis points, Dallas by seven and Los Angeles by three basis points," Blitzer added, "New York was marginally higher by two basis points. The major increase was Miami, up 38 basis points. Default rates in Miami went up for the third consecutive month; in January 2013 it was 1.01 percentage points above the October 2012 level. Miami had the highest default rate at 3.45 percent and Dallas-the lowest at 1.19 percent. All five cities remain below default rates they posted a year ago, in January 2012.”
Published
Feb 20, 2013
400 Mortgage Loan Originators Caught Trying To Skip School

400 mortgage loan originators nationwide deceptively claimed to have completed their annual continuing education as required by state and federal law.

Industry News
Jan 19, 2022
Infamous Better.com CEO Is Back And Employees Are Upset

After a month-long hiatus or “break” as Garg likes to call it, the CEO is back at the helm of the company.

Industry News
Jan 19, 2022
Capacity Closes $38M In Series C Funding, Surpasses $62M In Total Capital Raised

AI-powered automation platform, Capacity, announced an additional $27 million in Series C funding, closing out the round at more than $38 million.

Tech
Jan 19, 2022
Millennials Are Still Powering The Housing Market

First American Financial Corporation's Potential Home Sales Model for Dec. 2021 revealed that millennial demand is propelling the housing market, thanks to low rates and increased geographic flexibility.

Analysis and Data
Jan 19, 2022
Open Mortgage Adds A Chief Revenue Officer

Scott Harkless will spearhead all wholesale and retail sales functions for the national multi-channel mortgage lender.

Industry News
Jan 19, 2022
Home Builder Confidence Dips Due To Inflation And Supply Chain Concerns

Home builder confidence in the market for newly built, single-family homes fell by one point to 83 in January 2022, according to the National Association of Home Builders and Wells Fargo's Housing Market Index report.

Construction
Jan 18, 2022