From Moody’s comes mortgage arrears that are stable in aggregate but two speed under the bonnet:
The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) remained at 1.21% in May, unchanged from April, according to a recent report by S&P Global Ratings. While the Standard & Poor’s Performance Index (SPIN) for Australian prime mortgages was unchanged in percentage terms, in dollar terms the amount of loans in arrears by more than 30 days fell by around $A30 million, or 2%, month on month.
Before 2015, arrears typically fell between April and May, but for the past two years month-on-month arrears have increased in May. The average arrears level for May during the past 10 years has been around 1.30%.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
