Moody's Investors Service says delinquencies for Australian motor vehicle loan asset-backed securities (ABS) and prime residential mortgage-backed securities (RMBS) fell in August 2017, compared to the previous month.Specifically, 30-plus day delinquencies for Australian auto loan ABS transactions fell to 1.60 per cent in August 2017, a slight decrease from July 2017 (1.64 per cent), but well above August 2016 (1.42 per cent).This trend was echoed in the real estate sector that backs prime RMBS, where delinquencies transactions fell to 1.55 per cent in August 2017 from 1.60 per cent in July 2017, but rose from 1.49 per cent in August 2016."Looking ahead, we expect that delinquencies for Australian auto loan ABS and prime RMBS will rise for the remainder of 2017," says Alena Chen, a Moody's vice president and senior analyst."Weaker economic conditions in states reliant on the mining industry, rising underemployment, weak wage growth and less favourable housing market conditions will drive delinquencies higher."Moody's also points out in a new housing finance report that housing affordability for a new borrower - as measured by the proportion of household income needed to meet mortgage repayments - deteriorated on average across Australia over the year to September 2017.