Mortgage arrears climb steeply


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.

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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.