The recap of this weeks mortgage, home loan and housing news in Australia.

The top stories for the week ending 9/12/07:

Economists predict holiday hangover
ABC Online - 7.30 report
Greg Hoy, reporter from the ABC, covers the latest outcome of the RBA meeting and interviews a range of economists and industry members including Roger Mendelson of Prushka Debt Recovery, Michael Knox of ABN Amro Morgans and Alan Oster of the NAB. Transcript is available via the link above along with video.

Oz Economists Rethinking A Rate Rise
FNArena
A detailed article from FNArena covers the thoughts of several leading economists (from Macquarie, JP Morgan, Merrill Lynch, UBS and GSJB Were) on the future outlook for interest rates into 2008.

Home loan rates tipped to hit 9pc
The Australian
John Wiseman reports on studies from the South Australian Centre for Economics tipping that the resources boom will continue to fuel strong Australian growth adding pressure on the RBA to continue with rate rises through 2008. BIS Shrapnel, a forecasting firm, has issued similar sentiment regardless of a tightening global credit market - see: Mortgage rates to head past 9pc: economist.

RBA still behind the curve on monetary policy
The Australian
Article takes in several views from leading economists with some suggesting that the RBA could be out of step with trends in the global economy and other central banks that have acted by reducing rates in light of those trends, while other economists are pointing towards our connection to China’s economy keeping the Australian economy strong and continuing upward inflation pressure.

Debt crunch will strike consumers in double whammy
Herald Sun
A timely article by Jason Bryce provides a reminder to keep the budget in check and be prepared for what’s on the horizon. Article covers data from Dunn & Bradstreet with the company’s CEO, Christine Christian, saying: “Consumers need to think carefully about the levels of debt they are taking on, particularly as we approach Christmas.”.

Slipping off the property ladder
News.com.au
Kate Perry reports on figures stating there are 5.3 million housing loans in Australia, with about 11,800 of those in arrears by more than 90 days. With rate rises looming more could find themselves in a position of financial difficulty possibly falling behind on repayments. Facing a situation of bank or mortgagee foreclosure is not a fun position to be in and the article provides suggestions for what to do when facing possible property repossession.

From the RBA:
Statement on the conduct of Monetary Policy
A new government and a re-affirmation of the understanding between government and the RBA. Changes include the way future Governor and Deputy Governors are appointed effectively raising their independence, along with increased transparency of the RBA overall including recent changes to communication protocol.

Monetary Policy: Statement By Glenn Stevens
At the recent RBA meeting, and the last for the year, interest rates (cash rate) were put on hold at 6.75 per cent until the next meeting in February.

US and Global
Bush Announces Mortgage Agreement
New York Times
US President. George Bush, has announced an agreement with the mortgage industry today to freeze interest rates for up to five years for some of the homeowners who bought houses recently with subprime loans. The agreement would allow distressed borrowers who are current on their payments to keep their low introductory rates and escape an increase of 30 percent or more in their monthly payments when those rates expire.

Fool’s gold from financial alchemy
Sydney Morning Herald
Steven Pearlstein provides more insight to the US subprime mortgage market woes and a ‘financial house of cards’ stemming from collateralised debt obligation losses.