Bank\u2019s brutal reaction to couple\u2019s loan plea<\/a><\/p>\n![\"\"\/](\"data:image\/svg+xml,%3Csvg)
<\/p>\n
AMP chief economist Shane Oliver said higher inflation meant a November rate cut was unlikely.<\/p>\n
A Finder.com.au survey of 35 economists and property experts revealed all but five expected the RBA to hold rates at its Melbourne Cup Day board meeting.<\/p>\n
A third of the economists polled predicted a cut in February, while two thirds predicted a cut at some point between February and May.<\/p>\n
Some families may struggle to wait till next year. A recent survey of household spending revealed mortgage stress levels have been steadily rising in some states despite previous interest rate cuts this year.<\/p>\n
Part of the reason is that other living costs have surged and the relief offered by this year\u2019s three rounds of rate cuts was insufficient to make up for higher electricity, groceries and insurance costs.<\/p>\n
The surveys from research group Digital Finance Analytics showed the biggest spikes in NSW and WA. Some 51.2 per cent of NSW property owners were in \u201cmortgage stress\u201d \u2013 spending an unsustainable amount of their income on repayments.<\/p>\n
This was up from the 49.1 per cent reported to be in mortgage stress at the start of the year \u2013 before this year\u2019s three cuts. The numbers were close to identical in WA.<\/p>\n
Credit reporting agency Illion also revealed that families were increasingly turning to credit cards and other forms of personal loans to make up for shortfalls in their incomes.<\/p>\n
<\/p>\n
Rate cuts have coincided with a shortage of homes for sale and rising prices, which have made it harder for new buyers to enter the market. Picture Thomas Lisson<\/p>\n
Digital Finance Analytics data scientist Martin North observed a growing split in the fortunes of homeowners, with most struggling, but others \u201cwith plenty of cash flow\u201d.<\/p>\n
\u201cWe see a split between the two cohorts,\u201d he said, noting interest rate cuts had also fuelled steep rises in the amount of equity held by some homeowners.<\/p>\n
PropTrack data showed the average value of detached Sydney houses ballooned by $120,000 over the past year, with the average value of houses in some eastern suburbs growing by double that.<\/p>\n
Sydney homeowner Mark Lawrenson recently refinanced his home loan to save money and said a rate cut would have helped.<\/p>\n
\u201cWe are reasonably cautious with our finances so we are always careful not to overextend ourselves,\u201d he said. <\/p>\n
\u201cWe of course would prefer for rates to come down \u2026 It\u2019s always an expensive period coming up.\u201d<\/p>\n
Their mortgage broker Richard Brown of Mortgage Choice-Epping said banks were offering good deals for refinancers and many homeowners could get relief by negotiating a new rate with banks before an RBA move.<\/p>\n
\u2013 With reporting by Kaylee Cranley<\/p>\n","protected":false},"excerpt":{"rendered":"Governor of the Reserve Bank of Australia, Michele Bullock. Picture: Martin Ollman Australian homeowners are staring down a…\n","protected":false},"author":2,"featured_media":260635,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-260634","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/260634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=260634"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/260634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/260635"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=260634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=260634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=260634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}