Below potential
A bit like my old school reports, the ABS released its State Accounts which showed the expected lacklustre growth in Gross State Product in FY 2019, well below potential.
Across the industries only healthcare and social assistance recorded any sort of meaningful growth, with a bit of a residual contribution from the death throes of the construction boom.
There are many different ways to look at trends in household income and disposable income.
The big picture is that the resources jurisdictions of Western Australia and the Northern Territory have been in what people these days seem to call an 'income recession'.
Canberra incomes remained miles out in front on a per capita basis, as ever, with steady increases elsewhere.
The unemployment rate in WA has been steadily righting itself as some workers have returned interstate, and as mining drilling and exploration has picked up again.
Mortgage rates now falling
Mortgage rates now falling
Interest payable on dwellings crept a little higher in FY 2019 as lenders have been able to charge higher mortgage rates on interest-only loans.
However, since the election on May 18 interest rates have been cut thrice, and the interest rate differential for IO loans has also been snapping shut.
Total interest payable on dwellings remained lower than 11 years earlier - despite the 4 million increase in the Aussie population - and will fall again in FY 2020 reflecting lower mortgage rates, accelerated repayment of debt, and a huge reduction in the stock of IO loans as a share of total mortgage debt.
The implied average mortgage rate payable was extremely low at under 3½ per cent, reflecting the rapid growth in loan products that give borrowers access to offset account facilities.
There's been some screwball reporting of RMBS arrears over the past five years or so, but the Reserve Bank's Debelle did well to put the true picture of mortgage arrears into context at a speech today in Sydney.
One interesting point of note was the increase in longer term mortgage arrears in Western Australia, as lenders have adopted more lenient forbearance and foreclosure policies.
