Default Rate In US Mortgages Stabilzing

The default rate on U.S. mortgages is stabilizing according to U.S. Housing and Urban Development Assistant Secretary Darlene Williams. While speaking from a forum in Singapore the Housing and Urban Development Assistant Secretary said she didn't expect the recent cut in U.S. interest rates to significantly affect the number of defaults.

Darlene Williams added, the U.S. Federal Reserve's bigger-than-expected half-point cut of its key rate last week signaled that authorities were taking action to support the economy.

Many banks and investors have concerns about getting repaid because of the surge in defaults on mortgage loans. Subprime loans made to borrowers with poor credit are a major concern affecting sections of the credit market.