National default rates held steady in October
Ticked up slightly from September
Mortgage defaults remained flat in October with the first-mortgage default rate increasing slightly to 1.30% from 1.28% in September, the latest S&P/Experian Consumer Credit Default Indices report reveals.
The data is compiled and released by the S&P Dow Jones Indices and Experian.
"Consumer financial well-being is in a good shape," said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. "The indices remain at pre-financial crisis levels and are stable."
The second mortgage default rate posted similar results, marginally increasing to 0.72% in October, compared to 0.69% in September.
As a whole, the national default rate was unmoved from September, remaining frozen at 1.38% for the month of October.
Three cities – Chicago, Los Angeles and New York – saw declines in their default rates year-over-year, Blitzer noted.
Out of the five cities the company covers, Miami was the only one to see a default rate above 2%.
Meanwhile, Dallas, one of the more stable housing markets during the housing crisis, experienced a rising default rate, with it lifting to 1.35% from 1.23%.