Categories: Cross River NY

Mortgage default rate drives down household debt | Cross River Real Estate

Household debt continued to fall in July as the first mortgage default rate dropped to .88% from .89% last month, according to the S&P/Experian Consumer Credit Default Indices.

This is significantly down from 1.35% in July 2014.

“At just above one percent, default rates remain at historical lows. Mortgage default rates have been trending down while Auto and Bank Card are a bit higher than their historical lows set in April and March,” said David Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.

The second mortgage default rate slipped to .52%, down from .57% last month and .54% a year ago.

As a whole, the national composite hit 1.01% in July, down one basis point from last month and lowest level in over 10 years.

On the other side, non-housing debt increased slightly in the second quarter.

Auto saw its rate remain unchanged at 0.96%, falling only four basis points above its historical low, while the bank card rate declined 16 basis points to 2.86%.

 

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Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

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