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DS News Webcast: Wednesday 8/19/2015

The default rates for both first and second mortgages held steady from June to July while the composite index dropped by one basis point after all three increased from May to June, according to S&P/Experian Consumer Credit Default Indices for July 2015 released Tuesday. The composite default rate fell by one basis point down to zero point 92 percent in July after increasing by five basis points in June from May's historic low of 0.88 percent.

The first mortgage default rate was unchanged from June to July at 0.80 percent after jumping by six points in June from May's historic low of 0.74 percent. The second mortgage default held at 0.55 percent from June to July following a spike of 13 basis points in June from a historic low of 0.42 percent in May. Four of the five major cities covered in the report experienced an increase in default rate from June to July: Chicago, Miami, Los Angeles, and New York all saw default rates rise, while Dallas experienced a decline in default rate.

The share of total residential home sales in May 2015 that was made up of all cash sales was 31.9 percent, down from 35 point 1 percent in May 2014, according to CoreLogic's Cash Sales Data for May 2015 released on Tuesday. The cash sales share has declined year-over-year every month since January 2013. May's share marked 29 consecutive months of declines for cash sales as a percentage of total home sales. According to CoreLogic Chief Economist Frank Nothaft, a drop in REO sales has been the main force behind the continuing decline in cash sales share.

About Author: Jordan Funderburk


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