inflation out, deflation in., page-86

Borrowers struggle to make mortgage payments

Clancy Yeates

A growing number of borrowers are struggling to keep up with their mortgage repayments despite deep cuts in interest rates, with Sydney’s south-west suffering the most from mortgage pressure.

Figures by Fitch Ratings point to a weakening home loan market nationally, with one in 400 borrowers falling more than 30 days behind on their repayments in the six months to March.

Although repaying a variable loan became cheaper over the period, Fitch said the national share of mortgages that had become ‘‘delinquent’’ rose from 1.2 per cent to 1.45 per cent. The five-year average is 1.53 per cent.

‘‘The Reserve Bank of Australia’s decision to reduce the cash rate did not have a positive impact on mortgage performance in the six months to end-March 2013, in contrast to the six months to end-September 2012,’’ Fitch said.

Read more: http://www.smh.com.au/business/borrowers-struggle-to-make-mortgage-payments-20130701-2p7gm.html#ixzz2Xu4ckGgh

Sounds bad, doesn't it? Shell we put this 'huge rise' of delinquent mortgages in context?

The last time Australia was in recession, and we need to go back to 1989-91, the average default rate was around 4%.

Is there a slight chance for Fitch to deliver a report and MSM to report the facts? I doubt it.