Delinquencies on residential mortgage-backed securities (RMBS) fell for the second consecutive quarter, despite increasing unemployment according to two credit ratings agencies.
Moody's Investors Service found that delinquencies greater than 30 days past due for Australian RMBS fell to 1.32% from 1.45 in the three months to June this year.
Fitch Ratings also reported a decreasing trend in delinquencies, falling to 1.40% from 1.52% in the first quarter.
"This continues the trend of decreasing arrears achieved so far in 2009, and suggests that peak arrears were reached in Q408. Fitch does not expect to see those same levels of arrears for the remainder of 2009," said Leanne Vallelonga, associate director in Fitch's Structured Finance RMBS team.
"Australia has fared better than most other countries during the global financial crisis; and while uncertainty remains about a global recovery, unemployment in Australia remains at half the levels of the early 1990s - 11%-12% range in the depths of the last recession, and the outlook for borrowers is stable for the remainder of 2009," she added.
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