...Mortgage Performance Remains Stable: 30+ days delinquencies remained unchanged at 1.21% in 1Q14, driven by the improvement in severe delinquencies. This performance was despite an expected rise in delinquencies due to seasonal and holiday spending, Stable Forecast: Mortgage performance should remain stable over the next six months, due to a strong housing market and low interest and unemployment rates. 90+ Day Arrears ¡ Ongoing Improvement: Serious arrears decreased by 3bp, to a four-year low, as they continued to benefit from a firm housing market. Unemployment Stable: Fitch Ratings forecasts unemployment to remain stable for the remainder of 2014. Unemployment is a key driver of arrears, and any rise would have a negatively effect on performance. Any increase is likely to be small, with just a minor impact on arrears. High Mortgage Repayment Rates: Australia's repayment rates range between 15%-25%, substantially above the international average. The strong repayment levels are driven by...
