By
Mortgage delinquency rates in excess of 30 days in the Australian prime residential market dropped to 1.35% in August, down from 1.39% in July, according to Moody’s Investors Service’s Global Structured Finance Collateral Performance Review.
However, the August figure is up from the same time last year (1.24%), but analysts remain optimistic.
“Looking ahead, we expect the performance trends witnessed to date in 2013 to continue with stable delinquencies, underpinned by expected GDP growth of 2.0% to 3.0%, the current low interest rate environment, and a steady unemployment rate of 5.0% to 6.0%” says Jennifer Wu, vice president and senior credit officer at Moody’s.
The report says Australian prime 60-day-plus arrears in August, at 0.76%, also compare favourably to all economies covered in the report, except for Japan’s (0.29%).
