Home loan arrears improved in August, with the Australian mortgage
Standard & Poor's Performance Index showing a decline from 1.49
percent in July to 1.41 percent.
“Arrears typically decline in June and throughout the third
quarter. Mortgage arrears were up 13 basis points year on year in
June and above the five-year average of 1.25%.”
“Arrears fell in Queensland, South Australia, Northern
Territory, and Australian Capital Territory, but rose in Western
Australia, Tasmania, New South Wales, and Victoria. Arrears continued
to rise in Western Australia, despite a small improvement in May,
increasing to 3.05% from 3.00% a month earlier. South Australia
recorded the largest month-on-month improvement, with arrears falling
5 basis points to 1.52%.”
“Investment arrears were almost unchanged in June, falling 1 basis point to 1.47%, and owner-occupier arrears rose 1 basis point to 1.74% from a month earlier. Owner-occupier arrears have continued to rise toward their long-term peak of 1.83%, despite interest rates being around 3.00% lower. This reflects borrowers' increased debt-serviceability pressures in a low wage-growth environment,” according to spglobal.com
Arrears (borrowers late with their mortgage repayments) dropped nationally in all states
and territories, with Western Australia reporting the highest drop,
falling from 2.91% in July to 2.75% in August.
For all borrowers,the rate of mortgage arrears increased, with regional banks reporting
the largest increase, dropping 29 basis points to 2.18 percent in
August. The change can be due to recent interest rate cuts that have
been successful in helping the property and finance market in
Australia, says RBA Governor Philip Lowe.
He says the housing market is now turning around, which in turn will support consumption
and the labor market, leading to further growth. S&P Global
experts expect short-term arrears to continue to fall as the latest
rate cuts begin to filter through.
Source Here: Property Loan Arrears Boost
