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mortgage
15/03/2017
If interest rates start to increase, do you expect any change in property prices in the short to medium term? Any increase in interest rates would mean mortgage repayments would rise, putting pressure on household budgets; also, people buying properties would find it harder to qualify for a loan. These factors combined would put downward pressure on property but, of course, the effect on an individual property would depend on its location and price range. The pressure would be less […]
15/03/2017
The bad news for would-be homeowners is that on a range of measures Australian property is still overpriced. The good news, at least for those that own a house, is there’s not going to be a crash. Well, there won’t be if we can avoid falling into a recession and interest rates don’t go through the roof, both of which are looking “unlikely”, according to AMP Capital’s chief economist Shane Oliver. The only other way there could be a crash […]
15/03/2017
The Reserve Bank is considering tighter bank lending standards amid concern about how the financial system would handle a collapse in housing prices, beginning with Brisbane apartments. The Bank’s assistant governor (financial system) Michele Bullock told a business event in Sydney that the Reserve Bank was particularly uneasy about the “looming oversupply of apartments in Brisbane in particular, and possibly in some parts of Melbourne”. Sydney apartments were less of a worry. “There are indicators that, in the event of […]
14/03/2017
Moody’s has warned investors that securities backed by mortgages will come under greater stress this year amid “less favourable” conditions in the housing market, with the pain being felt most keenly in home loans sold by non-banks. As the government explores ways to improve housing affordability, Moody’s forecast delinquency rates for “prime” residential mortgage-backed securities would “continue to rise moderately” this year. In the fourth quarter of last year, 30-plus day delinquencies on prime RMBS — securities considered the safest […]
14/03/2017
The Reserve Bank has flagged throwing more “sand in the gears” of the housing market, as runaway price rises in Sydney and Melbourne renew bubble fears. The most recent home value indices put annual price rises in Sydney above 18 per cent, Canberra at 15 per cent and Melbourne more than 13 per cent. Those price gains are being driven by a surge in property investment, with Bureau of Statistics figures out on Friday showing that new investor lending grew […]