Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
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”
Mortgage Stress hit the headlines thanks to the ABC Four Corners programme, which used data from our household surveys. But if the tip of the iceberg is high debt, rising costs and devalued incomes, what lies beneath? We helped make the news this week, so in this special weekly edition of the Property Imperative to … Continue reading “What Lies Beneath? – The Property Imperative 26 Aug 2017”
From The Adviser. By requiring brokers to meet volume targets in order to retain accreditation, lenders are disadvantaging borrowers and potentially pushing brokers towards risky behaviour. That’s according to Peter White, executive director of the Finance Brokers Association of Australia (FBAA). He was speaking to The Adviser in the fallout following an ABC Four Corners … Continue reading “Lenders ‘intentionally disadvantaging borrowers’: FBAA”
From The Conversation. The view of Australian banks on the risk that mortgage stress poses to our economy and the banks’ own viability is worrying. Shayne Elliott, CEO of ANZ Bank commented in this week’s Four Corners report: The reality is that housing loans are pretty good because they’re quite diverse in terms of lots … Continue reading “Banks shouldn’t underestimate the risk of concentration in the housing market”
Household Incomes are growing at the slowest rate for two decades, putting more strain on family budgets who are wrestling with rising costs and bigger mortgages and battling the debt monster. What the implications for home prices, and the broader economy? Welcome the Property Imperative weekly to 19th August 2017, as we look at the … Continue reading “The Debt Monster – The Property Imperative Weekly – 19 Aug 2017”
We had significant reaction to yesterday’s post on the “normal” status of high household debt. So today we take the argument further using data from the RBA Household Balance Sheet series (E1) and the recent ABS data on income growth. The traditional argument trotted out is that household wealth is greater than ever, this despite … Continue reading “Another Perspective On Debt”
The latest data suggests mortgage delinquencies are rising, as the number of mortgaged households increase. Yet the RBA is bullish about future growth prospects, despite anemic retail spending, a stronger dollar and home lending reaching another new record. So what’s going on? Welcome to the latest Property Imperative weekly to 5th August 2017. We released … Continue reading “Heads You Lose, Tails They Win – The Property Imperative Weekly 05 Aug 2017”
The latest monthly banking statistics for July 2017 from APRA are out. It reconfirms that growth in the mortgage books of the banks is still growing too fast. The value of their mortgage books rose 0.63% in the month to $1.57 trillion. Within that, owner occupied loans rose 0.73% to $1,017 billion whilst investor loans … Continue reading “Home Loans Still Rising Too Fast”
Rental Stress is growing, and more property investors are underwater when it comes to covering their mortgage costs on an ongoing basis, so what are the implications for property investment as mortgage rates continue to rise? Welcome to the Property Imperative Weekly to 29th July 2017. We start with our research on property investment, which … Continue reading “Renters Under Pressure – The Property Imperative Weekly 29 Jul 2017”