Mortgage Arrears Hit 10 Year Low

(source News.com.au ==> Mortgage arrears decrease on low interest rate)

"MORTGAGE arrears decreased in the first quarter as cuts to interest rates and the Federal Government's stimulus payments offset the debt binge that traditionally takes place at Christmas.

"Fitch Ratings said that it was the first time in 10 years of measuring arrears that there had been a decrease in the first quarter from the fourth quarter.

"Increases usually occur due to seasonal Christmas credit spending,'' Fitch associate director for structured finance Leanne Vallelonga said.

"However, the combination of historically low interest rates and the Australian Government's $1000 payments to eligible families in December 2008 has provided a buffer.''

According to the Fitch Dinkum index, delinquencies over 30 days declined to 1.52 per cent in the first quarter, from 1.75 per cent in the three months to December 2008."

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