Mortgage loan defaults declined from September to October, with second-mortgage defaults dropping 16.28%, according to the S&P/Experian Consumer Credit Default Indices. Data from Standard & Poor's and Experian show that monthly default rates declined for all credit lines.
First-mortgage and auto loans declined in October to 2.91% and 1.92%, respectively. Bank cards decreased slightly, from 7.04% in September to 6.91% in October.Â
‘The report is encouraging,’ says David M. Blitzer, managing director and chairman of the Index Committee for S&P. ‘Declining consumer defaults should help restore confidence and spending as we enter the holiday season.’