Understanding Today’s Connected Borrower

Sign up for this webinar to learn how to transform the borrower journey from transaction to relationship and gain a significant lift in production in today’s digital lending environment.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Savvy lenders are already preparing for the next valley – Here’s how

Despite increased rate of tech adoption, the industry still has room for continued tech development and usage. Read here to learn more about key technologies that lenders need to give more attention to.


S&P/Experian: Mortgage default rate at lowest level in a decade

Three charts show latest trends in default rates

Despite a slight increase in July, the default rate for first mortgage loans still sits at its lowest point in the last 10 years, according to the latest S&P/Experian Consumer Credit Default Indices.

In fact, the mortgage default rate for first and second mortgages aren’t too far off from their July 2016 level, as homebuyers get better at paying their mortgage on time.

The indices represent a comprehensive measure of changes in consumer credit defaults and include bank card and auto loan default rates.

As seen in the chart below, the first mortgage default rate increased two basis points from June to 0.62%.

Click to enlarge


(Source: S&P/Experian Consumer Credit Default Indices)

This second chart gives a broader picture and shows the changes in default rates over the last ten years.

Click to enlarge


(Source: S&P/Experian Consumer Credit Default Indices)

“Default rates for autos and first mortgage loans are at their lowest points in the last ten years, while bank card defaults remain modest,” says David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.”

“Consumers’ use of credit is growing and the level of consumer credit outstanding is at an all-time high. In the year ending June 2017, consumer credit outstanding rose 5.7%, outpacing most spending categories across the economy,” he said. “However, retail sales excluding autos as well as auto sales are down slightly since April, while home sales are little changed in recent months.

The report also spotlights the consumer default composite indices for five major cities, shown in the chart below.  New York witnessed the largest decrease, falling six basis points from June to 0.82%.

Click to enlarge


(Source: S&P/Experian Consumer Credit Default Indices)

Latest Articles

The CFPB is coming for you: here’s how to prepare

If you’re caught in the sights of the CFPB — or if you’re hoping to avoid the regulator’s scrutiny altogether — here’s what you need to know in 2021. HW+ Premium Content

Apr 21, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please