Consumer credit default rates drop in February
Tuesday, March 20, 2012
The recently released S and P/Experian Credit Default Indices reveal that consumer credit default rates decreased in February on a month-over-month basis.
The national composite dropped to 2.09 percent for the month, down from 2.16 percent in January, while the first mortgage default rate fell .06 points to 2.02 percent.
"It seems that 2012 has begun on a positive note for the consumer," said David Blitzer, managing director and chairman of the index committee for S and P Indices. "We appear to be resuming the downward trend in consumer default rates that began in the spring of 2009. With last month's release, we reported that the second half of 2011 saw a rise in consumer defaults, led by four consecutive monthly increases in first mortgage default rates."
The housing industry and foreclosure issue affects consumers and the U.S. economy as a whole. A recent report from the Federal Housing Finance Agency revealed that permanent modifications on home loans from Fannie Mae and Freddie Mac reached 1.1 million, and loan mod performance improved in the four quarters ending March 31.
Investors concerned about how the housing market and consumer credit trends affect the ebb and flow of the stock market can consult discount brokers to get a better understanding.
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