The national composite default index reported a historic low for the second month in a row in May, one of four out of five national indices to report historic lows for the month, according to S&P Dow Jones Indices and S&P/Experian Consumer Credit Default Indices for May 2015 released Tuesday. The composite index declined by nine basis points from April to May, down to zero point 88 percent, a historic low for the second consecutive month.
The first mortgage default rate also posted a decline of nine basis points from April to May down to zero point 74 percent, also a historic low. The second mortgage default rate fell by one basis point for the same period, down to a historic low of zero point 42 percent. Four of the five major cities measured in the continued month-over-month declines in their respective default rates, with Dallas reporting a drop of 20 basis points down to a record low of zero point 70 percent in May.
Approximately 254 thousand properties regained equity in the first quarter of 2015, bringing the total of residential mortgaged properties with equity nationwide up to 44 point 9 million – approximately 90 percent of all mortgages nationwide, according to data released by CoreLogic on Tuesday. While more than a quarter of a million homes regained equity during Q1, the percentage of residential properties with negative equity declined year-over-year by about 19 point 4 percent from 6 point 3 million homes in Q1 2014 down to 5 point 1 million homes in Q1 2015.