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Report: Homeowners Getting Back on the Right Track

  • June 23rd 2011

by Mark Wellborn

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A recent report from Standard & Poor’s and Experian revealed that first and second mortgage default rates decreased last month to 2.09 percent and 1.42 percent, respectively, down from April values of 2.16 percent and 1.51 percent.

However, the real change in these rates can be seen over the last 12 months. A year ago, default rates for first mortgages stood at 3.45 percent and 2.41 percent for second mortgages. This drop is statistical evidence that homeowners are getting their balance sheets in order.

Report: Homeowners Getting Back on the Right Track: Figure 1

From the report:

“While we might observe volatility from month-to-month, looking at default rates over the past few years it is easy to see that consumers have come a long way in fixing their balance sheets,” says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. “All indices show default rates below where they were this time last year, and more so if you look back to 2008/2009.”

To put the current rates into perspective, in May 2009, the default rate for first mortgages was 5.67 percent and 4.41 percent for second mortgages.

See other articles related to: default rates, experian, mortgage rates, standard and poor's

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/report_homeowners_getting_back_on_the_right_track/3706.

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