Rate Rise Won’t Dent Blue Chip Confidence
Intergenerational report Policymakers are betting on low rates and solid growth, writes Ronald Mizen.
Intergenerational report Policymakers are betting on low rates and solid growth, writes Ronald Mizen.
House prices in areas where a large portion of households took low-deposit mortgages could be at risk of faster and bigger declines if homeowners find it tough to meet their increased mortgage repayments.
The squeeze on rental accommodation around the country eased slightly in April, with vacancy rates rising 0.1 percentage points to 1.1 per cent in the first increase since the start of the year.
Rapidly rising rents could push some aspiring homeowners to pull the trigger on buying a home, despite higher mortgage rates and inflated house prices, experts say.
Auction clearance rates fell sharply across most capital cities as the first interest rate rise in more than 11 years unnerved buyers who are worried about the impact of higher mortgage costs on their household budgets.
Stormy waters Everyone, from the Reserve Bank to economic commentators, has reached a consensus that Australia is in for a sustained period of increasing rates, writes John Kehoe.
Lower demand for housing as a result of higher interest rates and tighter lending is more likely to trigger faster and deeper price falls than any widespread mortgage defaults caused by the rising cost of credit.
Tipping point The double-digit growth in unlisted real estate funds thanks to cheap money could be coming to an end, particularly for newer releases, writes Duncan Hughes.