No sunshine for Gold Coast, but arrears to level off
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Adam Smith
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10/02/2012 2:00:00 AM
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Moody's has predicted mortgage arrears will level off in 2012, and says borrowers have the RBA to thank.
The ratings agency has indicated that arrears headed upwards over 2011, from 1.35% to 1.54%. But Moody's has said the RBA's rate cuts last year should keep arrears steady in 2012.
The RBA cuts should also put a floor under house prices. In spite of a decline over 2011, Moody's said house prices should stabilise over the year.
"The interest rate cuts and a strong economic environment will help stabilise prices, while limited supply will mitigate the likelihood of a downturn," Moody's said.
Though Moody's said it expected arrears to hold steady for 2012, it warned that areas such as the Sunshine Coast and Gold Coast could continue to see borrowers fall behind.
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