Standard and Poor's Global credit agency's quarterly report on "Australian Home Loan Arrears"
S&P:
- High levels of household debt and underemployment, as well as low wage growth, are leading to rising levels of mortgage arrears
- says interest rate and tax cuts, as well as easing credit conditions, are unlikely to help much
- Investor arrears are rising faster than owner-occupier arrears
- "Tepid wage growth, high household debt and a softening economy are likely to keep arrears elevated for some time"
- "Tougher refinancing conditions will continue to hold down prepayment rates by restricting borrowers' ability to self-manage their way out of mortgage stress."
(overnight news, an ICYMI)
