Defaults edge up

Mortgage default rates rose slightly in September, according to data released Tuesday

Defaults edge up

Mortgage default rates rose slightly in September, according to data released Tuesday.

The S&P/Experian Consumer Credit default Indices, which track consumer credit default levels, showed an increase in overall credit defaults in September, with the national composite at 1.38%, up from 1.34% in August.
Default rates for first mortgages crept up to 1.29% last month from 1.23% in August. Second mortgage also saw defaults increase, rising from 0.57% in August to 0.69% in September, according to the study.

Despite the slight default increase, consumer credit continues to look stable, according to David M. Blitzer, managing director and chairman of the Index Committee for the S&P Dow Jones Indices.

“Consumer credit quality continues to look healthy,” Blitzer said. “The indices remain at pre-financial crisis levels and are stable. … All loan types remain below their respective levels a year ago.“