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Default rates are on the rise month-over-month for both first and second mortgages nationwide, according to the S&P Dow Jones Indices and S&P/Experian Consumer Credit Default Indices for December 2014 released Wednesday. The first mortgage default rate experienced its biggest monthly increase since September 2013, rising by five basis points up to 1.02 percent for December. The second mortgage default rate took a leap of 11 basis points, up to 0.59 percent from November to December.
The national composite default rate, which includes first and second mortgage defaults as well as those on bank cards and auto loans, increased by four basis points up to 1.11 percent from November to December. All default indices are down year-over-year, however. The national composite was 24 basis points lower in December than it was for December 2013; the first mortgage default rate declined by 25 basis points year-over-year in December; and the second mortgage default rate fell by 17 basis points for the same period.
In the wake of the National Association of Home Builders' latest confidence index, builders convened in Las Vegas this week to discuss housing trends over the last few months and what they expect to see in 2015. In a panel at the group's International Builders' Show, top economists representing housing organizations and businesses projected a healthier year for housing ahead, citing a recovering labor market, low interest rates, and improvements in credit availability for borrowers.
