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Arrears on prime Australian mortgages improved slightly in February, recently released figures from Standard & Poor’s have revealed.
According to the ratings agency arrears on residential mortgages underlying prime RMBS were 2 basis points lower in February, dropping to 1.82 per cent. This was the first easing in arrears in five months and represented a $4 million decline in the total worth of loans in arrears greater than 90 days.
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Sub prime arrears also improved from 17.09 per cent to 16.32 per cent.
Vera Chaplin, Standard & Poor’s credit analyst, said the result could be due to large interest rate cuts and the government’s various stimulus measures.
“Traditionally, arrears volumes in February are higher than the previous months', so the February 2009 figure is encouraging,” she said.
