Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Recent changes in the rules has led banks to start reporting hardship arrangements on customers credit files. They will remain on file for a year beyond the end of the arrangement. This may have implications for some borrowers as they seek to restructure their mortgages in the current rising rate environment.
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The Conversation had an useful article about how to deal with mortgage debt pain. Bottom line is to get help and advice early.
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Today’s post is brought to you by Ribbon Property Consultants. If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you. Buying property, is both challenging and adversarial. The vendor has a professional on their side. Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make. Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest. Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The US mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that’s coming could be the worst since the housing bubble burst about 15 years ago, according to a recent Bloomberg report.
There’s no systemic meltdown coming this time around, because there hasn’t been the same level of lending excesses and because many of the biggest banks pulled back from mortgages after the financial crisis. But market watchers nonetheless expect a string of bankruptcies broad enough to trigger a spike in layoffs in an industry that employs hundreds of thousands of workers, and potentially an increase in some lending rates.
More of the business is now controlled by independent lenders, and with mortgage volumes plunging this year, many are struggling to stay afloat. “The nonbanks are poorly capitalized,” said Nancy Wallace, chair of the real estate group at Berkeley Haas, the business school at University of California, Berkeley. “When the mortgage market tanks they are in trouble.”
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you. Buying property, is both challenging and adversarial. The vendor has a professional on their side. Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make. Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest. Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
I caught up with Steve Mickenbecker from Canstar to pick over the rate changes this week, as CBA led the charge to lift mortgage rates 0.5%.
Importantly, there are steps household should be taking to minimise the adverse impact of the rate changes.
https://www.canstar.com.au/
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
Go to the Walk The World Universe at https://walktheworld.com.au/
The value of new loan commitments for housing fell 4.4 per cent in June 2022 (seasonally adjusted) but remained at a historically elevated level of $31.0 billion, according to data released today from the Australian Bureau of Statistics (ABS).
The ABS said: “The value of new owner-occupier loan commitments fell 3.3 per cent in June 2022, while new investor loan commitments fell 6.3 per cent. These falls followed rises in May, attributed to a clearing of application processing backlogs by lenders.
Elsewhere the total number of dwellings approved fell 0.7 per cent in seasonally adjusted terms in June, following a 11.2 per cent rise in May, according to data released today by the Australian Bureau of Statistics (ABS).The ABS, said “the decrease in the total number of dwellings approved in June was driven by a fall in approvals for private sector dwellings excluding houses, which dropped 5.7 per cent.”
Go to the Walk The World Universe at https://walktheworld.com.au/
Neo-Bank Volt has closed its doors and is returning deposits to its customers and selling its mortgage book. We look at why this happened, and whether other banks are at risk in this rising rate environment.
Go to the Walk The World Universe at https://walktheworld.com.au/
Neo-Bank Volt has closed its doors and is returning deposits to its customers and selling its mortgage book. We look at why this happened, and whether other banks are at risk in this rising rate environment.
Go to the Walk The World Universe at https://walktheworld.com.au/
The 50-year mortgage may well become a thing, as the UK Government confirms they are actively considering this move – despite modelling which shows it really only benefits banks, and may lift home prices even higher.
I fear we may well go the same way here, as I discussed recently with Edwin, our property insider. It is a form of madness.
You could bequeath your mortgage to your kids! And become effectively a life-long renter by another name. You will own nothing….
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest figures from CoreLogic show prices for homes are easing, and in some places falling. We look at the data, in the light of pressures on households, and rising stress as reported in our latest surveys. And we consider the future trajectory, sheeting the shape of price changes and wealth directly at the door of RBA monetary policy
[CONTENT]
0:00 Start
0:15 Introduction
0:25 June Price Moves
1:50 Major Cities
2:50 Regionals
3:50 Listings and Sales
5:50 Rentals
7:50 Outlook
12:00 Commentary
13:00 Latest Mortgage Stress
13:50 RBA will influence falls or gains
17:45 Conclusion and close
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
We know that Central Banks are lifting rates, and seem willing to wear a fall in stock markets and bond prices. But what about the property market? Are they willing to see that correct too?
Well, so far as the US is concerned, Friday was an important day in the history of finance, because of the strong CPI figures which we discussed in our post yesterday. Both the headline and core CPI readings were higher than markets were expecting. Neither stocks nor bonds enjoyed the news.
It changed the bond market’s view of Fed trajectory, higher and quicker, but it also broke the Mortgage-Backed Securities market, in the US, in bond jargon, MBS went “no-bid.” No buyers for MBS. Then came just a few posted prices beyond borrower demand, not wanting to buy except at penalty prices. Overnight the retail consequence has been a leap from roughly 5.50% to 6.00% for low-fee 30-fixed loans.
This signals a potential full-stop to housing finance, and so a big dent ahead in the housing market. Sure stocks were down 2-3% on the day, but this event is more mega. Stocks would be down way more if a potential freeze in housing growth is factored in.
Go to the Walk The World Universe at https://walktheworld.com.au/
