DFA released its report for January several weeks back, and confirmed a further rise in mortgage stress. In our show on this important issue, we also discussed the different methods used to assess mortgage stress.
Now new research from Roy Morgan confirms our findings. They say their research shows 1,609,000 mortgage holders (31.0%) were ‘At Risk’ of ‘mortgage stress’ in the three months to January 2024. This period included an interest rate increase on Melbourne Cup Day with the RBA raising interest rates by +0.25% to 4.35%.
“The extended pause in official interest rate increases for four months from July – October 2023 reduced the pressure on mortgage holders and allowed growth in several areas of the economy to ‘catch up’ and reduce mortgage stress from the mid-year highs above 1.56 million. However, the interest rate increase in November has added renewed pressure on mortgage holders.
“While all eyes are on the latest inflation figures and their potential influence on future movements in interest rates, the fact remains that the greatest impact on an individual, or household’s, ability to pay their mortgage is not interest rates, it’s if they lose their job or main source of income”.
In a few days I will be releasing my February result for stress, and we expect this to remain in the very high range, as costs of living and mortgage costs continue to rise. We also report rental stress, which is right on the front line with rentals in some cases rising 20% or more.
http://www.martinnorth.com/
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Today’s post is brought to you by Ribbon Property Consultants.
