Arrears on Australian prime home loans increased in May. The Standard & Poor’s Performance Index (SPIN) for Australian prime mortgages rose to 1.38% in May from 1.36% in April, according to a recent report by S&P Global Ratings. The SPIN for nonconforming mortgages fell to a record low for May of 3.65% from 3.86% the previous month, according to the report, titled “RMBS Arrears Statistics: Australia.”
Arrears performance was mixed across the states and territories in May, with arrears in Victoria declining and New South Wales and Queensland recording modest increases. Arrears showed a small decline in Western Australia. The Northern Territory overtook Western Australia to lead the nation with the highest overall arrears percentage; however, loans in the Northern Territory represent about 1% of the total loans that make up the SPIN.
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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.
Arrears on Australian prime home loans increased in May. The Standard & Poor’s Performance Index (SPIN) for Australian prime mortgages rose to 1.38% in May from 1.36% in April, according to a recent report by S&P Global Ratings. The SPIN for nonconforming mortgages fell to a record low for May of 3.65% from 3.86% the previous month, according to the report, titled “RMBS Arrears Statistics: Australia.”
