The first mortgage default report is out for the year, and so far, rates have only increased slightly. The report comes off the heels of a low default rate environment in 2016, which is likely to be tested in 2017 as interest rates start to rise.
Mortgage defaults slightly rise, but no need to be concerned
Consumer credit default rates on mortgages and auto loans remain low and stable. The first mortgage default rate increased to .72 in January, compared to .71 in December, and .86 in January of last year. Similarly, the second mortgage default increased to .48, compared to .41 in December, and… Read more at HousingWire.com
From December of 2016 to January 2017, the index level for first mortgages has increased from 0.71% to only 0.72%. Second mortgages saw a similarly slight increase from 0.41 percent to 0.48 percent. Likewise, mortgage delinquency has shown signs of being stable. Delinquency rate went down by 7.3% last year, but remained unchanged in the last two quarters.
Mortgage Defaults are Holding Steady
In addition to mortgage defaults, the S&P/Experian Consumer Credit Default Indices also covered bank card defaults. As of January, bank cards saw an increase in defaults, up to 3.21 percent, the highest level since July 2013. At the same time, results from the report show that mortgage delinquency has not shown significant change… Read more at DSNews.com
Mortgage rates rise following Trump’s win
Diana Olick reports on how Trump’s presidential win is affecting mortgage rates… Watch here