Australian mortgage arrears increased to 1.11% in 1Q16
Fitch cite seasonal Christmas spending, rising standard variable rates and a low real-wage growth
Add that arrears remain low compared with the 1.75% peak in March 2011
Expects arrears to fall over the next two quarters
- effect of Christmas spending fades
- May 2016 interest-rate cut starts benefiting borrowers
1Q16 arrears are the lowest in a first quarter in the previous decade
- the annualised residential mortgage-backed sector loss-rate - the ultimate performance indicator - has been falling consistently since 1Q13 to 0.02% in 1Q16
via Reuters
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