Falling prices not enough to make housing more affordable: Moody’s

Housing across the country will become less affordable this year and next even as prices fall, with a leading ratings agency warning strong wages growth will not be enough to offset the impact of higher mortgage interest rates.

Moody’s said that in May, Australian households with two incomes needed 26.8 per cent of their monthly income to meet the repayments on a new mortgage loan. In January, they required 25.7 per cent. Such an increase would add almost $300 to the monthly repayments on an $800,000 mortgage. That would be on top of the $650 a month in extra repayments from the increase in interest rates since May 4.increased the minimum wage for the 2022-23 financial year by 5.2 per cent

“Rising interest rates will overshadow higher incomes in addition to housing price declines,” Moody’s found.

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Falling prices not enough to make housing more affordable: Moody’sHigher interest rates will make housing less affordable across Australia even as prices fall, leading ratings agency Moody’s has warned. swrighteconomy I'm glad I worked hard when young, now I own 6houses outright , watch all of you squirm lol swrighteconomy I tend to keep an eye on the peroxide market... If the price dips, you can bet agents are hurting. swrighteconomy the hot money seems to be untraceable.........no interest
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