The month of November saw the first increase in mortgage defaults since December 2009, according to data released Tuesday by Standard & Poor's and Experian. The S&P/Experian Consumer Credit Default Indices showed that November's monthly default rates for first and second mortgages increased to 3.05% and 1.80%, respectively. The year-over-year decline, despite November's increase, stands at 34.84%.
Auto loans, on the other hand, fell in November to 1.76%, from 1.92% in October. The bank card index also fell slightly, to a default rate of 6.84%.
David M. Blitzer, managing director and chairman of the index committee, says that the mortgage sector deterioration "may be temporary." He adds that government economic data show improvements in both bank cards and auto loans, with credit balances and sales both on the increase.
Defaults varied across the country. Of the five major metropolitan statistical areas reported on, Dallas had a declining default rate of 2.20%. Los Angeles and Chicago each saw their rates increase, the former to 3.25% and the latter to 3.34%. Miami, driven by a large increase in first mortgage defaults, rose to 10.26%, the largest increase of the group.
A summary of changes in the indices is given in the table below.
