CoreLogic is out with an update on climbing mortgage arrears.
More loans are falling behind on their repayments: Mortgage arrears have been rising from their COVID lows of just 1.0% in Q3 2022, reaching 1.6% in the March quarter of 2024. This is the highest reading on mortgage arrears since Q1 2021.
Higher mortgage arrears due to sharp rise in cost of debt: The average variable interest rate on outstanding owner occupier home loans increased from 2.86% in April 2022 to 6.39% in March 2024, adding nearly $1,600 in monthly repayments for a borrower with $750k debt.
