Fitch Ratings reports a sharper-than-usual seasonal rise in Australian mortgage arrears in the first quarter of 2025, driven by ongoing cost-of-living pressures and high interest rates.
Conforming mortgage arrears (30+ days) rose 23 basis points to 1.36%, while non-conforming arrears jumped 39 basis points to 5.32%.
The increase is nearly three times the typical seasonal rise, which averages around 8 basis points in Q1.
Fitch attributes the spike to the cumulative impact of prolonged high interest rates and persistent inflation straining household finances.
While arrears worsened in Q1, recent RBA rate cuts in February and May—which weren’t yet reflected in the Q1 data—are expected to ease pressure on mortgage performance going forward. Fitch also anticipates another rate cut before year-end.
Meanwhile, housing prices rebounded, rising 0.9% q/q after a small decline in Q4 2024. Fitch expects further gains in 2025, supported by limited housing supply, falling rates, and strong migration, which should help contain losses from mortgage defaults.
Info via Reuters
This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about fitch ratings say australian mortgage arrears showed sharper than usual rise was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Fitch Ratings say Australian mortgage arrears showed sharper than usual rise )
Also on site :
- Road over canal in Penkridge closed as bridge reportedly collapses
- Saudi Arabia to unify LPG gas cylinder prices nationwide from January 2026
- 2 found dead after family disturbance reported in Concord