Private-market mortgage delinquencies reverse course and increase
Most loan types increased in default rates during October, with a surge in first mortgage default rates, according to S&P Dow Jones/Experian Consumer Credit Default Indices.
The national composite increased to 1.55% in October, the first time in nine consecutive months, compared to 1.46% from September.
The first mortgage default rate increased 1.47% compared to 1.36% from the previous month. Second mortgage default rates also rose to .65% compared to .64% last month.
"The second mortgage is marginally up by 1 basis point from its September rate of 0.64%, the lowest rate in its eight-plus year history," said managing director and chairman David M. Blitzer of the Index Committee for S&P Dow Jones Indices.
New York, Chicago, Dallas, Los Angeles and Miami are the five cities covered in the Metropolitan Statistical Area in regards to default rates.
Chicago and Los Angeles hit post-recession lows. Chicago’s default rate was 1.78%, down from 1.82% a month prior. Los Angeles also saw a decrease in default rate for the third month in a row, down to 1.44% compared to 1.45% in September.
Dallas’ default rate increased 23 basis points from September to 1.26% in October. The city still remains the lowest default rate of any of the cities published, according to the report.
In September, Fannie Mae posted a serious delinquency rate decline of three basis points to 3.41%. Freddie Mac also posted a decline in single-family serious delinquency by six basis points to 3.36%, according to Keefe, Bruyette & Woods.
Click on the graph to view the GSEs prime delinquencies.
Subprime total delinquencies including 30-day through 90-day delinquences and foreclosures posted a 33.5% decrease, compared to 34% from the previous quarter.
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