Prime home loan arrears improve in September
The extent of arrears on home loans improved, even if marginally, during September over August, according to ratings agency Standard & Poor's. In its quarterly review of the mortgage-backed securities market, published on Friday, S&P said that for prime home loans the incidence of arrears of 30 days or more in September 2006 fell to 1.07 per cent, down from 1.10 per cent in August 2006. Among non-conforming lenders arrears trends are diverging from those supplying prime home loans. S&P said arrears of 30 days or more on sub-prime loans increased to 11.53 per cent in September from 11.43 per cent in August, and up from the recent low of 10.62 per cent in June.