Skip to main content

Mortgage Default Rates Up Slightly

Phil Hall
Mar 21, 2017
Consumer credit defaults on first mortgages were up during December, according to the latest data report from the S&P/Experian Consumer Credit Default Indices

Default rates on first and second mortgages were up slightly in February, according to the latest S&P/Experian Consumer Credit Default Indices report.
 
The first mortgage default rate came in at 0.74 percent last month, up two basis points from January. The second mortgage default rate took a three-basis-point upswing, from 0.48 percent in January to 0.51 percent in February. But these increases were puny compared to the bank card default rate, which increased by one basis point to 3.22 percent, matching a peak not seen since July 2013.
 
“The increase in the Fed funds rate announced last week by the Federal Reserve will push up the interest rate charged on bank cards in the near future,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “The quarter percentage point increase will be gradually passed through to the charges faced by those borrowing with their credit cards. Based on the projections made by members of the Fed’s policy committee, we could see three or possibly four additional increases this year. Given the prospect of higher interest rates and continuing economic expansion, the recent rise in bank card default rates is not expected to immediately reverse. Interest rates on auto loans and home mortgages are also likely to advance following the Fed’s action ... While interest rates on home mortgages and auto loans are likely to rise, the default rates don’t show any adverse trends now.”
Published
Mar 21, 2017
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021