International ratings agency Fitch Ratings has revealed an improvement in the Australian property market as fewer people are defaulting on their mortgage payments.
Its latest report on residential mortgages shows the number of delinquencies was down by nearly a quarter in September 2011, dropping to 1.42 per cent of loans from a high point in March of 1.77 per cent.
One factor behind the fall is likely to be the Reserve Bank of Australia's decision to cut interest rates twice this year, the agency claimed.
"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,'' Fitch analyst James Zanesi told AAP.
Queensland remained the country's worst-performing state while Melbourne's northern suburbs came out on top, with only 0.54 per cent of lenders owing their mortgage for more than 30 days.
Despite this, Moody's Investors Service revised its view of the Australian mortgage industry from stable to negative today (December 20th), citing uncertainty in the market as its major concern.
Posted by Craig Francis
