The Reserve Bank of Australia (RBA) has released its Financial Stability Review, indicating that most borrowers are expected to continue servicing their debt even if interest rates remain high for an extended period. The report highlights that only 1% of borrowers are in negative equity, and banks anticipate a slight increase in arrears rates, although they are expected to stay historically low. Specifically, less than 1% of housing loans are 90 days or more in arrears.
A somewhat reminiscent Gilded Age statement by the RBA, given that nearly half of all borrowers are facing financial strain. Mortgage arrears does not accurately gauge this hardship, because borrowers prioritise keeping their homes at any cost, a lived experience foreign to the… https://t.co/WvneG6O8AS
Mortgage arrears (RBA) #ausbiz https://t.co/PfNtgz4Mok
RBA Financial Stability Review: Most Borrowers Seen Coping If Rates Stay Higher For Longer - Banks Expect Arrears To Rise A Bit Further But Remain Low
RBA: BANKS EXPECT ARREARS RATES TO RISE A BIT FURTHER, STAY LOW HISTORICALLY - RBA: LESS THAN 1% OF HOUSING LOANS ARE 90 DAYS OR MORE IN ARREARS
RBA: NEARLY ALL BORROWERS EXPECTED TO CONTINUE TO SERVICE THEIR DEBT, ONLY 1% IN NEGATIVE EQUITY
Rates stay steady amid warnings housing boom could delay cuts https://t.co/P54TpoNutk #realestate #RBA #interestrates