MacroBusiness
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at 2:20 pm on July 16, 2021 | 11 comments
Australian property market prices continued to climb over the last month, with the past six months seeing some of the strongest growth on record. Mortgage interest rates edged higher as the Reserve Bank of Australia ended its Term Funding Facility. There are some extraordinary divergences in affordability. It has never been cheaper in some markets to service a mortgage, but never more expensive to save for a deposit or pay off the loan.
In general, housing valuation and affordability statistics worsened over June. For investors, rental yields have never been lower in an absolute sense, never higher relative to mortgage rates.
MacroBusiness
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at 12:00 pm on May 12, 2021 | 2 comments
Australian property market prices continued to climb over the last month, and mortgage interest rates stayed constant. There are some extraordinary divergences in affordability. It has never been cheaper in most markets to service a mortgage, but never more expensive to save for a deposit or pay off the loan. In general, housing valuation and affordability statistics are improving outside of Sydney houses. For investors, rental yields have never been lower in an absolute sense, never higher relative to mortgage rates.
The net effect is that the Federal Government and Reserve Bank have successfully distorted conditions to encourage as many people as possible to borrow as much as possible. An investment in housing is basically a vote of confidence in their ability to keep force-feeding the market.