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The RBA considers that savings and employment cushion the mortgage tension – MNI

According to MNI, the Reserve Bank of Australia (RBA) believes that “Accumulated savings, a tight job market, and spending cuts will make higher interest rates manageable for most homeowners“.

This comes at a time when A$400 billion of fixed-rate mortgages are due in 2023 and house prices are set to record eight straight months of declines.

MNI, citing sources familiar with RBA thinking, noted: “The full impact of the cumulative 300 basis points of tightening since May will become apparent in the coming months. as rising cash rates feed through to adjustable-rate mortgages, but a particular focus is on borrowers who have locked rates at record lows and will face significantly increased repayments as most of the pandemic-era fixed-rate deals expire this year. Fixed-rate mortgages peaked at around 40% of all home loans in early 2022.”

Source: Fx Street

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