Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The RBA has updated its E2 Household Finances Selected Ratios to June 2017. As a result, we see another rise in the ratio of household debt to income, and housing debt to income. Both are at new record levels. In addition, we see the proportion of income required to service these debts rising, as out … Continue reading “Household Debt Burden Rises Once Again – RBA”
From The Advisor. A mortgage market analyst has said that he is “astonished” that banks don’t tell borrowers how much their repayments will be if rates were to rise. More than half of borrowers have no clue what impact a 2 per cent rate rise will have on their home loan, according to Digital Finance … Continue reading “Borrowers in the dark over rising rates”
There is an assumption that as employment rates and growth picks up, the much needed wage growth will follow. We discussed this on ABC’s The Business last week, with HSBC’s Chief Economist who held the view that the RBA won’t lift the cash rate here until wages growth comes through. We were not so sure. … Continue reading “The Disconnect Between Unemployment and Wages”
A segment from ABC’s The Business, in which I discuss with Paul Bloxham Chief Economist HSBC, the question of when the RBA may lift rates, and the potential impact on households. In essence, will the RBA be able to wait until income growth recovers, thus protecting household balance sheets, or will they move sooner as … Continue reading “The Business Does Rate Rises and Households”
Two years after launching its online mortgage broking platform, HashChing says it is shaking up the home loans industry once again with a new GroupBuy solution. They claim the potential savings are huge by flipping the usual power dynamic of a bank and borrower. Customers join a group with similar lending requirements (such as refinancing … Continue reading “HashChing Launches New GroupBuy Solution”
A bunch of new data came out this week, so we discuss the findings and explore what it means for households and their budgets. Welcome to the Property Imperative weekly to 9th September 2017, the latest edition of our finance and property news digest. We released the August edition of our Mortgage Stress research which … Continue reading “The Light In the Tunnel – The Property Imperative 09 Sep 2017”
Roy Morgan Research says that in August 1.324 million Australians were unemployed (10.2% of the workforce). This is similar to a year ago (down 8,000, or 0.2%). The “real” unemployment figures of 10.2% are substantially higher than the current ABS estimate for July 2017 (5.6%). However more Australians are now under-employed than this time last … Continue reading “Underemployment Higher – Roy Morgan”
New data out this week gives an updated read on the state of the property and finance market. We consider the evidence. Welcome to the Property Imperative Weekly to 2nd September 2017. Starting overseas, we saw lower than expected job growth in the USA, and also lower than expected inflation. Overall, the momentum in the … Continue reading “Rates Lower For Longer – The Property Imperative Weekly – 02 Sept 2017”
The latest data from the US which shows low inflation and wage growth has pulled the implied forward interest rates down suggesting the Fed will hold rates lower for longer. This is reflected in falling yields on the T10. Nearly half of the “Trump Effect” repricing has been undone. This is also flowing into lower … Continue reading “Low US Inflation Signals Interest Rates Will Remain Lower For Longer”
From The Real Estate Conversation. Competition for good-quality borrowers is hotting up in the lead up to spring, with lenders offering lower interest rates, fee waivers, or lower deposits for favoured customers. Twenty-three lenders have dropped their home loan rates since 1 July, according to mortgage comparison site, Mozo. “While Spring is traditionally peak season … Continue reading “Lenders offering lower interest rates, incentives in lead up to spring”