For Australians with a mortgage, there’s a good chance life is feeling somewhat tougher – and for good reason. For one thing, mortgage rates are increasing. Meanwhile, the Aussie dollar has been depreciating against the US dollar, which is eroding the global purchasing power of all Australians. Unfortunately, these dynamics... Show More
While you may not follow movements in the bank bill swap rate (BBSW), right now they are worth paying attention to. You see, rates are on the rise. And that means the funding costs for our major banks are also going up. This could force them to raise mortgage rates... Show More
After raising standard variable rates on interest only and investment property mortgages in 2016 and 2017, the big banks have recently unwound some of these increases. This has surprised some observers. So, what’s going on? Show More
As I expected, this week the RBA left rates on hold. Despite a lift in variable mortgage rates by the major banks, a firmer $A, and a lower than expected CPI result, the most important development over the past month has been the tentative signs of improved business confidence –... Show More
Last week’s dual announcement by Westpac (WBC) of an increase in its mortgage rates and the capital raising of $3.5 billion is still being digested by market participants. WBC’s announcement was peculiar in one specific regard. They increased their dividend, at the same time as declaring its desire to raise... Show More
As we have discussed a number of times in the past, the major banks face significant headwinds from increasing capital adequacy requirements over the next few years. This is due to a partial reversal of the significantly lower risk weightings that were applied to major bank mortgages, combined with the... Show More
Lenders shutting down operations as US mortgage struggles get worse. US mortgage interest rates have surged over the past few weeks causing fewer Americans to refinance or apply for new mortgage loan. As a result, mortgage lenders are struggling and many have suspended operations or sharply reduced their staffs. Home... Show More