...Record Low Arrears: The Dinkum Index fell 18bp to 0.91% in 3Q15, the lowest in a decade, from 1.09% the previous quarter, as house prices rose; other key factors that enhanced 3Q15 mortgage performance included the stable unemployment rate (6.1%), low cash rate (2%), low standard variable rate (5.45%), and low CPI (1.5% yoy). New Origination Magnifies Improvements: Two-thirds of the drop was due to the inclusion of new transactions six months after closing. These deals constituted 16.3% of the index and had WA arrears of 0.33%. The Dinkum would have fallen 6bp, still reaching the lowest level in a decade, even after removing the impact of these deals. Losses Good as It Gets: The 12-month annualised loss rate was unchanged qoq at an extremely low 0.02% helped by capital city house price growth of 11% yoy to 3Q15. Serious Arrears Also Reach Lows: Arrears of 90+ days decreased yoy to 0.41% in 3Q15, from 0.47% in 2Q15, strengthening house prices allowed borrowers to sell their properties to...
