Rising home loan interest rates may push mortgage stress further into "elevated" territory in mining regions and other parts of the country with weak labour markets, mortgage insurance giant Genworth says.

Georgette Nicholas, chief executive of Genworth, expects house prices to "moderate", as a result of the regulator's crackdown on interest-only lending, and the recent rate hikes. Credit:Louise Kennerley

The insurer on Wednesday said a higher proportion of home owners in Queensland and Western Australia had fallen behind on repayments, and this contributed to a 34.7 per cent slide in its profit.

While NSW and Victoria performed much better, mortgage delinquencies also edged up in the two largest states, with the insurer saying job losses in Victoria's manufacturing industry had hit some customers.