More manageable mortgages bring fewer defaults

More homeowners are finding their mortgages more manageable as fewer borrowers default on their mortgage, according to Standard & Poor’s and Experian credit data.

The report marks the eighth consecutive month that the number of people defaulting on their mortgage has dropped.

According to Standard & Poor’s and Experian, default rates are now meeting post-recession lows. The rate for first mortgage defaults was 1.4 percent in August compared to 1.92 percent a year ago. The default rate on second mortgages dropped 0.72 percent in August compared to July. The second mortgage default rate was 1.27 percent a year ago.

“There are still a substantial number of loans outstanding that defaulted in the past and that segment of the market is still of concern,” says David Blitzer, managing director and chairman of the index committee at Standard & Poor’s. “But the drop in mortgage default rates is a good sign for the housing market and the consumer.”