According to the report by ratings service Standard & Poor’s, loans in arrears by greater than 30 days for prime RMBS grew three basis points in November to 0.99 per cent, with total prime RMBS outstanding falling to approximately $126.5 billion.
Sub-prime arrears increased 12 basis points to 5.13 per cent, with total sub-prime RMBS outstanding falling to $2.8 billion as of 30 November.
However, the report also revealed that the prime RMBS sector has continued to report lower levels of home loan arrears compared to 12 months ago.
Standard & Poor’s credit analyst Narelle Coneybeare said that while a seasonal increase over the coming quarter is expected, the outlook for arrears performance is stable.
“Sub-prime arrears increased in November in the longer dated arrears categories; however, the overall movements were modest and the outlook for this sector is also stable,” she said.