Fitch (in short):
- Australian mortgage arrears are at their highest degree since Could 2020 when arrears spiked as a result of starting of the Covid-19 pandemic
- 30+ day mortgage arrears rose by 10bp qoq to 1.21% in 4Q23, persevering with the rise from December 2022 when arrears have been at their lowest since 2002
- Early-stage arrears elevated by 6bp to 0.45%, the very best 30-50 day arrears charge seen since February 2016
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Traditionally, arrears improve within the fourth quarter, however this improve is bigger than in prior years. Subsequently, the rise probably signifies that persistent inflation and the 4.25pp improve in official rates of interest since Could 2022 are having an affect on some debtors.
This text was written by Eamonn Sheridan at www.forexlive.com.
