Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The annual report produced by BIS Oxford Economics for QBE Lenders’ Mortgage Insurance says that the outlook for house and unit prices is likely to become more subdued over the next year or two. Many markets are now building too much stock, particularly units, after new dwelling starts peaked at a record 233,600 dwellings in … Continue reading “QBE Housing Outlook Forecasts Slowing Price Growth”
John Fraser, Secretary to the Treasury, gave an update on household finances and housing as part of his opening statement to the October 2017 Senate Estimates. More evidence of the Council of Financial Regulators group-think? The view that debt is born by those with the greater capacity to repay belies the leverage effect of larger … Continue reading “The Treasury View Of Household Debt”
The latest economic and finance data appears to be pulling in two directions, so we discuss the trends. Welcome to the Property Imperative Weekly to 21st October 2017. Watch the video, or read the transcript! In this week’s review of the latest finance and property news, we start with data from the Australian Institute of … Continue reading “Pulling In Two Directions – The Property Imperative Weekly 21 Oct 2017”
From Moody’s. On Tuesday, Canada’s Office of the Superintendent of Financial Institutions (OSFI) published the final version of “Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures,” which mandates more stringent stress-testing for uninsured mortgages. The guideline, which takes effect on 1 January 2018 and applies to all federally regulated financial institutions in the country, … Continue reading “Canada Reinforces Mortgage Underwriting Guidelines”
From Business Insider. By all recent accounts, Australian house prices are starting to cool. And as the effect of macro-prudential measures and out-of-cyle rate hikes take hold, most analysts agree Sydney and Melbourne’s red-hot housing markets are unlikely to maintain their recent rate of growth. Those market conditions have led some analysts to downgrade their … Continue reading “How much Australia’s major banks will lend, based on your income?”
From Business Insider. Australian households are in a vulnerable financial position, especially those who have taken out a mortgage. And in an era of weak incomes growth, soaring energy prices and high levels of indebtedness, with the prospect of higher interest rates on the way, many intend to cut discretionary spending in anticipation of even … Continue reading “It’s ‘crunch time’ for Australian households”
From Moody’s A less accommodative US monetary policy may heighten market volatility near term. However, over time, the fundamentals that give direction to business activity and financial markets will prevail. For now, current trends involving demography, technology, regulation, and globalization favor the containment of core price inflation and still relatively low US Treasury bond yields. … Continue reading “Bond Returns, Lower For Longer?”
An interesting and wide ranging speech from RBA Governor Philip Lowe. In short, the global economy is on the up, central banks are beginning to remove stimulus, and locally, wage growth is low, despite reasonable employment rates. Household debt is extended, but in the current low rates mostly manageable, but the medium term risks are … Continue reading “RBA Says The Next Chapter Is Coming”
From The Conversation. Income inequality has dropped slightly in Australia, largely driven by a fall in incomes for the richest 20% of the population, according to the latest Australian Bureau of Statistics (ABS) Survey of Household Income and Wealth. The richest 20% of the population have seen their real disposable incomes (adjusted for the number … Continue reading “Income inequality ticks down as the rich see their incomes fall: ABS”
ANZ says Job Advertisements rose 2.0% m/m in August, the sixth straight rise. Job advertisements currently sit 13.3% higher than a year ago. In trend terms, job ads were up 1.3% m/m in August following a 1.4% rise in the previous month. Annual trend growth picked up slightly, rising from 11.6% in July to 12.5% … Continue reading “Job Ads Up Again – ANZ”