First mortgage default rate falls to 1.13%
S&P: More homeowners can afford their house
All five national indices showed a drop-off for the second month straight in March, according to the latest report from the S&P Dow Jones Indices and Experian for the S&P/Experian consumer credit default indices.
Falling to the lowest rate since July, the national composite dropped to 1.20% in March, a decrease from 1.30% in February and a drastic decline from 1.50% in March. This is the lowest post-recession rate.
In addition, the first mortgage default rate was 1.13% in March, its lowest level since September 2006.
Second mortgages came in at 0.60% in March, down from 0.69% in February.
“Along with signs that the economy is improving, consumer credit default rates continue to gradually decline,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.
“Economic reports confirm these improving trends. Gains were made in consumer confidence and the labor market as a result of fewer applicants filing for unemployment benefits. Consumer default rates have stabilized at levels similar to those seen before the financial crisis,” the report explained.