Home Loans & Mortgages

A growing number of mortgaged homeowners are feeling the pinch and mortgage payment arrears are rising to 2 percent in some areas of Australia. Whilst this is still tiny compared to what has happened in the US, it should be a red flag to the RBA when considering any further rate rises. In fact some are now believing that the next interest rate move could be lower.

Reserve Bank of Australia’s Governor, Mr Glenn Stevens gave a big hint as August as likely time for another move to increase interest rates. That would mean a flow on to mortgage home loan interest rates within days. Australia has three nice problems to have: A positive trade boom Mostly created by a mining boom [...]

The Reserve Bank of Australia Board meets today to decide the fate of homeowners home loan rates, and whether to raise interest rates Our tip is that home loanrates will stay as is. The RBA will not raise the official cash rate till the picture of the Australian and World Economies becomes clearer. Sudden collapse [...]

Australian homeowners and renters on hurting over mortgage rates, reduced family support, housing bubble concerns. Home buyers are disinterested.

So perhaps the RBA hinted interest rate rise won’t happen in June, even thought its still likely and we predicted it last month. New facts have emerged since then.

Some economists now say that home loan interest rate rise could push homeowners and renters over the top as mortgage rates for homeowners and landlords would increase the cost of living. It would also make home buyers stay away from the housing market and further add to falling home values. That would have to hurt bank profits.

The reason house prices are so high is that it has been easy for people to get into so much debt, increasing the pool of house buyers. To reduce the pool of homebuyers, either build more housing stock, or, make credit less available.