...Arrears Fall Again: There is a clear declining trend for both early- and late-stage arrears. Modest economic growth and improved labour market conditions are reflected in the declining trend of early-stage arrears. New Defaults Down: Fewer loans are rolling into default, with the constant default rate (CDR) down to 1.2% from 1.7% a year ago. The volume of total arrears including defaults has now fallen to 6.2%, from the recent peak of 6.4% in 2Q14. Home Prices Stabilise: National home prices increased for two consecutive quarters for the first time since 3Q07. The quarter-on-quarter (qoq) change was 0.2% in 4Q14, driven mainly by small rises in Madrid, Catalunya and Pais Vasco. Property Sales Gain Momentum: With property price adjustments coming to an end and the consequent increase in credit availability, property sales in 2014 gained momentum. Fitch expects property sales to gradually increase, in line with credit growth....
