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Subs within Eastern Suburbs

Where is it more affordable to buy compared with renting? Some practical usage scenarios.

Get the complete and complimentary ‘Buy v Rent’ report and spreadsheet here: This week RP Data released the Buy versus Rent report.  The report turned out to be more popular than we expected – the number of people trying to download the free report and Excel spread sheet overloaded the servers that run the […]

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Funding composition of banks in Australia

Will the gap between the cash rate and mortgage rates come back to ‘normal levels’? Not likely in the near future.

Up until December 2007 the gap between variable mortgage rates and the Reserve Bank’s cash rate was 180 basis points; a gap which hardly changed between 1997 and the end of 2007. Since the onset of the GFC the only consistency between the variable mortgage rate and the cash rate has been a widening gap […]

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Proportion of new housing finance commitments on a fixed rate

What’s more important…? How much of the RBA’s 50 basis point cash rate cut the banks have passed on or which bank actually has the lowest interest rates?

There has been a great deal of hype around how Australia’s banks are deviating from the historic norm of adjusting their mortgage rates in line with the Reserve Bank of Australia cash rate moves.  Two weeks ago, when the RBA slashed the cash rate by 50 basis points and the Big 4 banks passed on […]

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Avg standard mortgage rates over time

Welcome back below average mortgage rates

With the low CPI reading earlier this week, a drop in the cash rate next Tuesday is pretty much a done deal.   The question is now will the RBA cut the cash rate by 25 or 50 basis points?  According to financial market expectations (based on the ASX cash rate futures yield curve), the cash rate […]

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The Reserve Bank is in a real bind

Following a raft of economic data which has come out recently I felt it was important to reflect on this data.  It is obvious that the Reserve Bank (RBA) is currently in a very tough predicament. While much of the data is proving to be quite negative and providing a clear case for interest rate […]

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percentage on fixed vers gap btwn variable and fixed

The gap between variable and fixed interest rates has just passed a historic peak. Is it time to fix?

An interesting fact in the latest Australian Bureau of Statistics Housing Finance data was the continued trend towards fixed rate loans.  The data showed that over the month of November 11.1% of borrowers opted for a fixed rate mortgage; that’s the highest percentage of fixed rate commitments since June 2008.  It’s interesting in the sense […]

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Annual change in Consumer Price Index by expenditure class, Seasonally Adjusted

Housing costs show the largest quarterly rise in the September CPI

Its worthwhile having a closer peek at the ‘new look’ CPI figures just released by the ABS- particularly, how have the components of the housing category contributed to price rises. The September quarter data was the first time the 16th series of CPI has been publicly released (the 15th series was phased out in June).  […]

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The rate hike we didn’t have

The interest rate ‘hold’ decision earlier this week marks nine straight months of flat rates; the most stable interest rate environment for five years. Anyone would be forgiven to raise an eyebrow at that; the spectre of an interest rate rise has been lurking since at least March when the core inflation reading bottomed out […]

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Will higher interest rates affect the housing market?

With another interest rate rise seemingly around the corner thanks to the high CPI reading for June, it is worthwhile looking back to see how interest rate rises over the recent past have affected the housing market.  The Reserve Bank started lifting interest rates back in October 2009; prior to that, the average standard variable […]

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Annual change in CPI over time

For the economic prosperity and welfare of the people of Australia

On July 27th at 11:30am a very large number of Australians will be flocking to the Australian Bureau of Statistics web site to check out the June quarter inflation numbers.  Maybe I’m just growing old and boring, but I can’t recall a time when the quarterly CPI figure had been so eagerly anticipated. The reason […]

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