How does it feel to be a property investor right now?, page-116

@Pavlov’s Dawg

Good reading after your Matin North shilling of SEP 2020 and Macro Business crapola.......no wonder you've gone quiet lately, another useless bear prediction apart Property prices went bonka

Mortgage arrears have hit their lowest levels in two decades as record-low unemployment continues to offset the Reserve Bank’s efforts to cool the economy, Fitch Ratings analysis reveals.

The Reserve Bank is expected to deliver another rate hike on Tuesday – with financial markets pricing in a 50 basis point increase in the cash rate to 2.35 per cent.

But Fitch Ratings’ latest mortgage arrears report shows Australia’s 30-day mortgage arrears fell 7 bps in the three months to June 30, to 0.82 per cent – the lowest level since tracking began in 2002.

And HSBC chief economist Paul Bloxham expects strong lending standards will cushion Australian banks from a sharp uptick in mortgage losses even if the cash rate reaches 3.25 per cent.

Fitch analysis shows 90-day mortgage arrears fell by 4bp to 0.4 per cent quarter-on-quarter in June, with late-stage arrears tipped to remain broadly stable through this calendar year.