categories
Recent Comments
- Heading Uptown: A Look at Uptown Dallas Condos | Condos Ion on Homes vs. Condos
- Rhode Island Rental Update- Spring 2013 | William Raveis of Rhode Island on Charts of Rent vs. Buy and Inflation Adjusted Home Prices
- Today’s Housing Market – What You Need to Know on Homes vs. Condos
- Finding a Nugget of Gold Buried in the Sand | Keeping Current Matters on Ranking the Cities
- A Dozen Reasons for Self Directed IRA Real Estate Investments in Dallas on Rise and Fall
tags
10-City Composite 20-City Composite Atlanta Boston Chicago Credit Default Indices Dallas David Blitzer Economy and Real Estate Existing Home Sales Experian home prices Las Vegas latest results Los Angeles Miami mortgages MSAs New York Phoenix residential real estate S&P/Case-Shiller S&P/Case-Shiller Home Price Indices report S&P/Experian Consumer Credit Default Indices San Francisco US Housing Prices
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions
One Trackback
[...] As seen in the graph below, the national composite closely follows first mortgages primarily dues to how much weight first mortgage default rates have in the national composite, about 84%. The purchase of a house is a very large and leveraged investment, so first mortgage loans are substantially larger than any other consumer loan type. As a result, a first mortgage default has a larger impact on a consumer’s financial health than the other loan types.Source: housingviews.com [...]
Second consecutive increase in first mortgage default rates
On November 15, S&P Indices and Experian released October data for the S&P/Experian Consumer Credit Default Indices, which measure changes in consumer credit defaults. The data showed an increase in the composite index, led by an increase in first mortgage default rates. Auto loan, second mortgages and especially bank cards all saw pretty significant drops in their default rates; however, the national composite rose with first mortgages.
As seen in the graph below, the national composite closely follows first mortgages primarily dues to how much weight first mortgage default rates have in the national composite, about 84%. The purchase of a house is a very large and leveraged investment, so first mortgage loans are substantially larger than any other consumer loan type. As a result, a first mortgage default has a larger impact on a consumer’s financial health than the other loan types.
First mortgage default rates rose from 1.99% in September to 2.08% in October. This is the second time we have seen an increase in first mortgage default rates since November 2010. Second mortgage default rates fell moderately to 1.29% in October, from 1.32% in September.
S&P/Experian Credit Default Indices