April 18, 2012 5:04 am
In addition, the four that did decrease posted their lowest rates since the end of the recent economic crisis. The national composite declined to 1.96 percent in March from the 2.09 percent February rate. The first mortgage default rate decreased from February's 2.02 percent to March's 1.88 percent. Second mortgage and auto loans default rates also declined from 1.20 percent and 1.22 percent in February to 1.03 percent and 1.11 percent in March, respectively. Bank card was the only loan type where default rates increased in March to 4.47 percent from its 4.41 percent February level.
"The first quarter of 2012 was largely positive for the consumer," says David M. Blitzer, managing director and Chairman of the Index Committee for S&P Indices. "Not only have we resumed the downward trend in consumer default rates that began in the spring of 2009, but we appear to be reaching new lows across most loan types. The first three months of 2012 show broad based declines in default rates with first and second mortgage, auto and composite default rates all reaching post-recession lows.
"The first mortgage default rate fell by 14 basis points in March, bringing this rate below the prior August 2011 low. The second mortgage rate fell by even more during the month, 17 basis points. Both second mortgage and auto default rates are also at their lowest in the three-plus year history of these data. While the bank card rate rose, it was not by much and is still close to the recent low reported just last month.
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