The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) fell to 1.15% in June from 1.21% in May, according to a recent report by S&P Global Ratings. While arrears typically fall month on month during this period of the annual cycle, we also attribute some of the decline to a rise in outstanding loan balances in June.
The Standard & Poor’s Performance Index (SPIN) for Australian mortgages fell for prime home loans in arrears by more than 30, 60, and 90 days. Home loan arrears fell in states and territories nationwide during June.
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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.
