RESIDENTIAL PROPERTY
A RECORD 1.5 million Australians, or 29.2% of mortgage holders across the country, are now at risk of mortgage stress.
According to new research from Roy Morgan, in the three months to July 2023 where there were two interest rate hikes of 0.25%, mortgage holders “At Risk” or...
642,000 additional households became at risk of mortgage stress, after interest rate rises in 12 of the last 15 monthly meetings by the RBA, with...
“The figures for July 2023 take into account all twelve RBA interest rate increases which lifted official interest rates from 0.1% in May last year to...
“The ABS CPI figures for the year to June 2023 show Australian inflation dropping to 6.0%, down from 7.0% in the year to March 2023 and...
“However, although the drop in the quarterly CPI figure is welcome, there are new inflationary pressures building in the economy...
While the number of Australians at risk of mortgage stress is at a record high, the record high proportion is still held by mid...
“Of even more concern is the rise in mortgage holders considered ‘Extremely At Risk’, now estimated at 1,017,000 (20.3%) in July 2023 – the highest for over...
If the RBA does raise rates again by 0.25% in September, Roy Mortgage is forecasting an increase in those at risk or mortgage stress to over 1.57 million...
Roy Morgan modelled the impact of two potential interest rate increases of 0.25% in September – of 0.25% to 4.35% – and October – of 0.25% to 4.6%...
The proportion of those at risk would increase from 29.2% in July to 30.2% in September, if the RBA raises rates in the coming month.
While if the RBA raises interest rates by a further 0.25% in October to 4.6%, the proportion will rise to 30.7% of mortgage holders, with...
“When considering the data on mortgage stress it is always important to appreciate interest rates are only one of the variables that determines whether a mortgage...
“The latest figures on mortgage stress show that rising interest rates are causing a large increase in the number of mortgage holders considered ‘At Risk’ and...