Higher Mortgage Default Rates in September


The first mortgage default rate was 0.93% in September 2014, according to the latest S&P/Experian Consumer Credit Default Indices. It rose by 2 basis points from August when it was 0.91%.

Despite its increase for a second month in a row, the first mortgage default rate in September of this year was still lower compared to September 2013. One year ago, it was 1.28%. In October 2013, it reached its peak level of 1.30% for the period from September 2013 to September 2014. Then it declined for nine months until July 2014 when it reached 0.88%.

The rate of default of second mortgage loans also marked an increase from August to September of this year. It increased by 1 basis point from 0.51% in August to 0.52% in September. The second mortgage default rate was 17 basis points lower in September of this year compared to September 2013. Back then, it was 0.69%.

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In September, the second mortgage default rate returned to its level of 0.52% from July after a decline to 0.51% in August. The rate has been following a downward trend since November 2013 when it was 0.87%.

The consumer credit composite default rate rose to 1.04% in September from August when it was 1.03%. It has been increasing since July of this year. Despite this, the composite rate of default on consumer credit in September 2014 remained below its level of September 2013 when it was 1.38%.

The auto loan default rate marked an increase of 1 basis point from August to September of this year. In September it was 1.01% while in August it was 1.00%. It remained below its level from September 2013 when it was 1.15%. The bank card default rate marked a decrease in September to 2.63% from 2.73% in August. In September of last year, it was 3.14%.



Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info

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