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The number of housing loans in arrears has extended its rise for the seventh consecutive month, new figures have revealed.
According to Standard & Poor’s Performance Index (SPIN), 1.21 per cent of prime residential mortgage-backed securities (RMBS) were in arrears during May – up from 1.14 per cent in April, and from 1.07 per cent 12 months prior.
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“Most of the increase in arrears for the month was in the more severe category of 90-plus days overdue,” S&P noted.
“The larger upward movements were in the major banks and other bank categories, while non-bank financial institutions was the only sector to see a decline in arrears in May.”
Meanwhile, the proportion of non-conforming loans in arrears increased to 4.71 per cent during the month from 4.25 per cent in April.
“The non-conforming measure tends to exhibit some volatility from month to month, but remains low by historical standards and well below the peak of 17 per cent in 2009,” S&P added.
[Related: Home loan values rise]
