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Australian Mortgage Arrears at Highest Level Since Pandemic Began
Australian mortgage arrears are at their highest level since May 2020 when arrears spiked due to the beginning of the Covid-19 pandemic, Fitch Ratings says in its latest Dinkum RMBS index report. The 30+ day mortgage arrears rose by 10bp qoq to 1.21% in 4Q23, continuing the increase from December 2022 when arrears were at their lowest since 2002. Early-stage arrears increased by 6bp to 0.45%, the highest 30-50 day arrears rate seen in the Dinkum Index since February 2016. Historically, arrears increase in the fourth quarter, but this increase is larger than in prior years. Therefore, the rise most likely indicates ... (full story)