Thursday, April 1, 2010

Defaults in Canadian Mortgages Jump 76%

Here is a yet another example that you should be suspicious of any stats that are published.

It has been widely reported that Canadian banks have raised mortgage rates this week, and mortgages and rates are all over the news. Yesterday, the Ottawa Citizen newspaper published an article stating that the Canadian Association of Accredited Mortgage Professionals reported that 0.44% of mortgages had fallen into default at the end of October. At the end of 2007, the figure was 0.25%. That is a jump of 76%, a huge increase.

However, never mind that the strange periods mentioned, the overall figure is still a very low 0.44%. Is this really a significant jump? We need a lot more data to prove this.

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2 comments:

brij2far said...

Did you overlook that decimal point in front of the two digit numbers? You want to get people excited over the difference between .43 and .25? Come on if they had no defaults last year and had one this year would you be headlining mortgage defaults rise 100%? Come on you can do better.

Nexa said...

brij2far,

No, that would be infinity.

That is precisely the point of the post. First sentence: "Here is a yet another example that you should be suspicious of any stats that are published."

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