Monday, February 15, 2016
Moorpark Country Club Estates and Moorpark Highlands Luxury Home Specialist, Will Mortgage Defaults Rise or Fall This Year? #ChrisBJohnsonRealtor
Chris B Johnson, REALTOR®Neighborhood Market Report
For the U.S. real estate market, the last decade has been incredibly volatile. We’ve witnessed a full boom and bust cycle. Prices soared for years, peaking in 2006. However, the price increases were unsustainable, and a bubble formed. When it burst in 2008, the housing market crashed, causing an unprecedented foreclosure crisis.
So which direction will the mortgage default index head to start the new year? The industry will find out on Tuesday, February 16, when S&P/Experian releases the consumer credit default report for January 2016.
The first mortgage default rate was 0.84 percent in December, an increase of two basis points from November. The rate ticked up by one basis point in November and by five basis points in October. Even after the three straight months of increases, the first mortgage default rate was still down by 18 basis points over-the-year in December 2015.
Three months of increases late in the year do not make a trend, according to David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices.