A great deal of progress has been made in the real estate market since the housing crisis in 2008.

More individuals are applying for U.S. home mortgages, and consumer default rates decreased in September.

S&P Dow Jones Indices show low default rate. According to a recent press release from S&P Dow Jones Indices, there was a composite default rate of 0.89% in September. This is down seven basis points when compared month over month.

“Default rates on consumer credit and mortgage borrowing are fairly stable and close to the lowest levels seen in the last 10 years,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Debt services ratios – the proportion of income going to paying down consumer credit and mortgage debt – are close to the lowest on record since the Fed began collecting the data in 1980.”

Miami saw the most substantial decrease, down 39 basis points from August, New York reported a default decrease by 14 basis points, and Chicago dipped 12 basis points.

Black Knight Financial Services data shows delinquency rate remains low. According to the report, titled “First Look at September Mortgage Data,” the delinquency rate for mortgages rose slightly by 1.7%. However, it still remains well below last year’s level.

The current level is 4.9%, which is down 14% when compared on a year-over-year basis.

More individuals able to stay current on their home loans indicates a healthier housing market.
“Increases in spending and rising home sales are contributing to the growth in credit outstanding,” said Blitzer, according to S&P Dow Jones Indices. “Personal consumption expenditures in real (inflation adjusted) terms have been rising at a 3% annual rate since late spring and don’t show signs of a major decline. Sales of both new and existing homes are showing good numbers with the combined annual rate close to six million homes.”

Blitzer added that lower job gains and an interest-rate hike by the Federal Reserve may impact the current health of the housing market. However, unemployment levels remain very low, and interest in real estate continues to bolster the industry.