More home owners are finding their mortgages more manageable as fewer home owners default on their mortgage, according to Standard & Poor’s and Experian credit data. This marks the eighth consecutive month that the number of people defaulting on their mortgage has dropped.
In fact, according to S&P and Experian, default rates are now meeting post-recession lows. The rate for first mortgage defaults was 1.4 percent in August compared to 1.92 percent a year ago. The default rate on second mortgages dropped 0.72 percent in August compared to July. The second mortgage default rate was 1.27 percent a year ago.
“For the housing market, there are still a substantial number of loans outstanding that defaulted in the past and that segment of the market is still of concern,” says David Blitzer, managing director and chairman of the index committee at Standard & Poor’s. “But for 2012, the drop in mortgage default rates is a good sign for the housing market and the consumer.”
Source: “Mortgage Defaults Keep Declining,” HousingWire (Sept. 18, 2012)
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