More borrowers behind on house, car loans

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(Australian Associated Press)

An increasing number of borrowers have fallen behind on their mortgage or car repayments, with more set to join them amid rising underemployment, weak wages growth and a more difficult housing market, ratings agency Moody’s says.

Delinquencies for prime residential mortgage-back securities increased to 1.61 per cent in January, from 1.57 per cent in December, while 30-day delinquencies for car loan asset-backed securities rose to 1.80 per cent, from 1.54 per cent over the same period, the agency says.

“Weaker economic conditions in states reliant on the mining industry, rising underemployment, weak wages growth and less favourable housing market conditions will drive delinquencies higher,” vice president and senior analyst Alena Chen said on Monday.

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