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National Mortgage Default Rates Fall in March

Mortgage default rates moved lower along with the overall national default rate in March, according to the Consumer Credit Default Indices released by ""S&P Dow Jones Indices"":http://www.spdji.com and ""Experian"":http://www.experianplc.com/.

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The first mortgage default rate fell to 1.41 percent last month from 1.48 percent in February and 1.88 percent from March 2012. The second mortgage default rate was down to 0.69 percent, a monthly and yearly decrease from 0.71 percent and 1.03 percent, respectively.

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Meanwhile, the national composite stood at 1.50 percent, which represents a month-over-month decrease from 1.55 percent in February and a year-over-year decrease from 1.96 percent.

""The first quarter of 2013 shows healthy consumer credit quality,"" says David M. Blitzer, managing director and chairman of the Index Committee at S&P. ""The first and second mortgage default rates decreased, the bank card rate increased and the auto loan rate remained flat in March. All loan types remain below their respective levels a year ago.

All five metros the indices track showed a decline in default rates from a year ago, while all but one metro registered a monthly decline.

""Four of the five cities we cover showed decreases in their default rates in March â€" Miami was down by 28 basis points, Chicago by 25, Los Angeles by 15 and Dallas by six basis points. New York was the only city with increased default rates; it was up 38 basis points. Miami had the highest default rate at 2.93% and Dallas - the lowest at 1.20% among the five cities,"" Blitzer added.

About Author: Esther Cho

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