Stress on the outer
Although moderate overall, 30-day mortgage delinquency rates are higher in the outer suburbs, reports Moody's.
The lowest delinquency rates, as expected, are typically in the inner suburbs, and the highest 30-40km from the respective CBDs.
This holds true across each of the major capital cities, although in Brisbane and Melbourne there are pockets of stress in the inner city, due to the concentration of high-rise towers.
Moody's notes that these trends reflect higher incomes in the inner suburbs.
Moody's expects that these patterns will continue - especially in the event of any economic downturn - due to the lower incomes in outer suburbs and weaker credit characteristics and low-skilled employment in those locations.
Moody's expects only a moderate increase in RMBS delinquencies.
Moody's expects only a moderate increase in RMBS delinquencies.
