Mortgage News Recap
Sunday, May 25th, 2008
The recap of this weeks mortgage, home loan and housing news in Australia.
Here is top stories for the week ending 25/05/08:
Prime mortgage market delinquencies up
SMH
Credit ratings agency Fitch Ratings says the Australian prime mortgage market showed an increase in 30-plus day delinquencies , increasing to 1.31 per cent in the quarter, from 1.07 per cent at December 31, 2007.They also state that levels of prime mortgage market delinquencies in Australia were still low by international standards. View Story »
Fuel, food prices hit harder than rates: study
SMH
Respondents to the latest Mortgage and Finance Association of Australia/Bankwest Home Finance Index survey have indicated that higher petrol and food prices are having a bigger impact on households than interest rate hikes. Borrowers and non-borrowers also believe their financial situation has worsened during the past year. View Story »
Economists warn householders to brace for mortgage pain
Courier Mail
The threat of another interest rate increase has roared back on to the agenda just a week after Treasurer Wayne Swan delivered his “inflation-fighting” Budget reports Clinton Porteous. View Story »
Mortgage rates could hit 9.5pc
News.com.au
While official cash rates were left on hold at 7.25 per cent in May, the minutes of the meeting released yesterday reveal the central bank came perilously close to raising rates – and could yet do so when it meets in early June. Another rise – possibly 25 basis points – would take the standard variable rate to 9.5 per cent adding more than $50 a month to the average $300,000 mortgage reports Mark Kenny. View Story »
From the RBA
Minutes of the Monetary Policy Meeting of the Board
The question therefore remained whether the setting of monetary policy was sufficiently restrictive to secure low inflation over time. Members spent considerable time discussing the case for a further rise in the cash rate. But on balance, given the substantial tightening in financial conditions since mid 2007, and the extent of uncertainty surrounding the outlook, the Board decided that it was appropriate to allow the current setting of monetary policy more time to work. However, should demand not slow as expected or should expectations of high ongoing inflation begin to affect wage and price setting, the outlook, and the stance of policy, would need to be reviewed. The Board would need to evaluate prospects for economic activity and inflation in the light of incoming information.
