Home Loan Defaults Up
Minneapolis, MN: Home mortgage loans defaulted at a higher rate in the last quarter of 2012. This is unwelcome news compared to an overall trend of good news in the housing and real estate market
Experts are confused as to why this is happening, as the general housing market has been improving. Foreclosures have been on the decline. New homes sales are up, and with the continuance of historically low mortgage interest rates, first-time home buyers have been snapping up low priced real estate for some time now.
2012 showed a nice improvement in the quality of consumers loans, like cars and credit cards, but first and second mortgage loan defaults have been holding the overall default rate up.