Interest Rate changes lower Mortgage stress

According to FitchRatings Director James Zanest, “Those regions which have shown strong sensitivity to mortgage rates due to socio-economic factors and which were affected most in March 2011 by Christmas spending and increased interest rates have benefited most from stable cash rates,” “As mortgage rates have decreased and the Australian economy and unemployment remain solid, the increased cost of living remains the main variable generally affecting household affordability, he added. The Reserve Bank of Australia cut interest rates in November and December for the first time since November last year and Western Australia recorded a strong improvement because of the rebound in the mining sector. The percentage of loan repayment was more than 30 days overdue, dropped from 1.77% in March to 1.4% at September 30. Queensland remains the worst performing state with 1.7% and Victoria is the best performing state with a rate of 1.04% which is lower than other states. Tourism destinations and mining industries are now the best performing sectors for the improvement of employment and contributed to improve mortgage performances.