A recent survey has indicated that the level of mortgage arrears amongst Australians has recently dipped as base interest rate cuts reduce the pressure on homeowners.

Like most other major economies Australia has struggled to cope with the global credit crunch, with its residents being hit hard financially as a result of the financial problems. However, despite the state of the economy a recent report has indicated that the level of mortgage arrears amongst Australian homeowners has continued to fall.

The survey was carried out by Standard & Poor, and it showed that the number of missed repayments on mortgages across the country continued to decrease. It is thought that at least part of the reason for this continued decline in arrears levels is the aggressive cut in the base interest rates, which has made things far easier financially for homeowners that would otherwise have struggled even more to keep on top of their mortgage repayments.

The figures from this report will add fuel to already rising speculation with regards to whether the economy is starting to stabilise, and some industry experts have suggested that it may now have reached a point where it was worth looking at how the economy will shape up in terms of recovery. The level of mortgage arrears in April is said to have come in at 1.62 percent compared to 1.66 percent in March.

However, CBA economist Michael Blythe does not think that dramatic interest rate cuts will continue. He said: ”We dodged the recession bullet. And we pulled that off through a combination of good policy and good luck.  It seems likely that the official family - Treasury and the RBA - will have to revise up their growth forecasts.”

Source - http://business.theage.com.au

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