Mortgage arrears fall in cities, boom in regions

Via S&P:

The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) fell to 1.10% in August from 1.17% in July, according to a recent report by S&P Global Ratings. The decline, which is not unusual because arrears typically have fallen in August for the past 10 years, was partly influenced by an increase in loan balances outstanding during the month.

According to the report, titled “RMBS Arrears Statistics: Australia,” arrears in the nonconforming sector fell to 4.48% in August from 4.80% in July, despite a decline in outstanding loan balances during the month. The largest improvement was recorded for mortgages 31-60 days in arrears.

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About the author

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.