Australia’s falling house prices are actually a good thing for mortgage holders. Here’s why
Falling Australian house prices are being viewed as a potential silver lining by the Reserve Bank of Australia. Governor Michele Bullock suggests that the cooling market may reduce the immediate pressure for further interest rate hikes.
Why it matters
This signals a potential shift in monetary policy that could provide relief to mortgage holders struggling with high repayment costs.
With the RBA likely avoiding immediate interest rate hikes, mortgaged households are expected to benefit from lower loan repayments. Photograph: Darren England/AAP With the RBA likely avoiding immediate interest rate hikes, mortgaged households are expected to benefit from lower loan repayments. Photograph: Darren England/AAP Housing Analysis Australia’s falling house prices are actually a good thing for mortgage holders. Here’s why Patrick Commins Economics editor The RBA’s governor, Michele Bullock, has made it clear that the ‘easing’ property market is on her mind
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It’s the silver lining that’s not making headlines: falling home prices means another Reserve Bank rate hike is less likely.
RBA board members will not be sitting on Monday and Tuesday discussing ways to prop up Sydney house values .
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