Moody's: Mortgage delinquencies to rise "moderately"

So far, so good, via Moody’s:

Mortgage delinquencies will increase moderately Australian RMBS delinquency rates, which were broadly stable over the three months ended 30 June 2018, will rise moderately over coming quarters, with high debt levels and higher interest rates putting pressure on mortgage borrowers.

The 30+ day delinquency rate for prime RMBS was 1.52% in June 2018, compared with 1.5% in March 2018 and 1.6% in June 2017, as Exhibit 1 shows. For prime RMBS issued by major banks, the 30+ day delinquency rate was 1.58% in June 2018 compared with 1.57% in March. For regional banks, it remained flat at 1.99%, while for prime RMBS issued by other authorised deposit-taking institutions, the delinquency rate was 0.57% in June, compared with 0.51% in March.

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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.

Moody’s: Mortgage delinquencies to rise “moderately”