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Australian housing loans in arrears for prime and non-conforming residential mortgage-backed securities (RMBS) have fallen for the fifth consecutive month.
According to research by credit ratings agency Standard & Poor’s (S&P), arrears levels for prime RMBS fell from 0.91 per cent to 0.88 per cent in October, while non-conforming RMBS in arrears fell to a record-low 3.95 per cent – down from 3.99 per cent in September.
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S&P credit analyst Narelle Coneybeare said the prime and non-conforming sectors have both recorded falls each month since May 2015, and the overall levels are historically low.
“The non-conforming SPIN [which measures the weighted average arrears more than 30 days past due on residential loans in RMBS transactions] has hit a new record low, and the prime SPIN is at its lowest level in more than a decade,” she said.
“We believe there might be some increases in coming months due to seasonal factors, but the overall the trend is likely to remain stable in the year ahead.”
[Related: Metro outperforms regional for mortgage delinquencies]
