The RBA Financial Stability Report includes a warning about high household debt AND home price falls. But their “new” model is proposing a less powerful relationship between prices and interest rate moves than their previous one (which was built at a time lower rates were expected…) I smell a rat…
They suggest 15% falls over a couple of years if interest rates rise by 2%, whereas the previous model was ~28% for 1% change.
Pretty convenient eh?
Go to the Walk The World Universe at https://walktheworld.com.au/
