Mortgage debt in the US rose sharply in November and default rates climbed to 2.17 percent, according to the latest Standard & Poor’s/Experian indices.
The index showed that the mortgage default rate stood at 2.08 percent in October compared with 3.06 percent a year ago. Second mortgage default rates declined to 1.26 percent in November, down from 1.29 percent in October and 1.8 percent a year ago.
Meanwhile, all five major metropolitan statistical areas indicated that mortgage default rates climbed in November, with Los Angeles witnessing the largest increase, jumping to 2.53 percent in November from 2.15 percent a month ago. In Miami, the rate increased from 4.16 percent to 4.47 percent.
“These are two markets where we have seen some recent weakness in other housing statistics,” said David Blitzer, Managing Director and Chairman of the index committee for S&P Indices.
“Again, while there may be some cause for concern if this upward trend continues, other recent housing statistics point to the same relative weakness, so these statistics align with the overall current picture of the economy.”
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