Data through November, released by Standard & Poor's and Experian for the Consumer Credit Default Indices, show a rise in monthly default rates for first and second mortgages to 3.05% and 1.80%, respectively. Although this is the first monthly rise in defaults for first mortgages since December 2009, the year-over-year decline is still 34.84%, Standard & Poor's and Experian note.
‘Default rates for auto loans and bank cards declined in November, while first and second mortgages experienced somewhat higher defaults,’ says David M. Blitzer, managing director and chairman of the index committee. ‘However, the deterioration in the mortgage sector may be temporary: Rates of new defaults have been declining for over a year, with occasional brief interruptions.
"The figures for five leading metropolitan areas confirm key housing trends found in other S&P reports," he continues. "Los Angeles is experiencing the beginning of stability in housing, while Miami and much of Florida continue to face credit default concerns."