From Moody’s:
Moody’s Investors Service says that the proportion of Australian residential mortgages that were more than 30 days in arrears (30+ delinquency rate) rose to 1.52% in November 2016 from 1.20% in November 2015.
Moody’s points out that higher delinquencies raise the risk of mortgage defaults and are therefore credit negative for Australian residential mortgage-backed securities (RMBS).
Moody’s expects mortgage delinquencies to continue to increase over 2017. Weaker conditions in states reliant on the mining industry, high underemployment, and less favorable housing and income dynamics will drive delinquencies higher.
Moody’s says that mortgage delinquencies increased in all eight Australian states and territories over the year to November 2016, hitting record highs in Western Australia (WA), South Australia and the Northern Territory.
For more details, please find below press release and attached just-released report titled “RMBS – Australia: Mortgage Delinquency Map: Home Loan Arrears Rising in All Australian States”.
Find the full report here with full postcode breakdowns for arrears. Enjoy!
