Default Rates Decline

MHProNews has leaned from NationalMortgageNews the default rate for both first and second mortgages declined May to June, 2012, with first mortgages defaulting at a May 2007 level, and second mortgages at an eight year low. The composite drop was from 1.5% in May to 1.41% in June, according to S&P/Esperian numbers. In addition, bank card defaults dropped from 4.35% in May to 3.97% in June, reaching its lowest level since the end of 2007. David Blitzer, managing director of S&P Dow Jones indices, says, “Consumer default rates are falling and we are approaching new lows across most loan types. In the last recession most default rates peaked in the spring of 2009; since then the decline has been bumpy but consistent.”

(Image credit: TotalMortgage)

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