Jobs driving mortgage home loan interest rates up

Credit tightens as jobs drive mortgages

Jobs driving mortgage rates

A recovering  jobs market could be the trigger an interest-rate rise next month, despite warnings any rate hike could send battling homeowners to the wall.

The other way to curb housing demand is to tighten credit lending standards, and this is already happening.

The chance of the second mortgage loan interest rate increase this year has increased after job figures improvements in ads last month.

The other concern is rising home prices and rising rents.

Australia’s jobless rate is less than half that of the US, and this points to the worry that the World Recession, in human terms is far from over in the US, the UK and the EU.

It also means that Australia has to make decisions on interest rates ahead of the market leaders, without many of the leading indices that would normally be part of the mix. Controlling housing demand with higher mortgage rates one way.

The other, less painful way is to tighten the rules of lending new credit and that is also coming into the home loan picture.

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Rick Adlam Has Written 141 Articles For Us!

Rick Adlam has been involved in mortgage finance since 1996 with Equity Home Loans as a Founding Partner. Rick created Mr Mortgage™ in 1999, one of Australia's first online mortgage brokers. As a mortgage introducer Rick specializes in helping his clients get approved for low interest mortgage loans with no ongoing fees and charges, and low doc home loans for the self employed.

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