Why falling interest rates won’t help affordability
A 'white-hot lust for property' means interest rate cuts that it is hoped will enable more people to become home owners could backfire rather spectacularly.
Lower interest rates on the surface appear to offer home buyers an opportunity but the truth may prove to be very different. (Image source: Dean Clarke/Shutterstock.com and API Magazine)
There’s understandably a lot of positivity about the impact of falling interest rates on housing affordability.
The mainstream media and the usual suspects of real estate boosters have been crowing that the reduction in mortgage interest rates
will make a big difference, opening the door for new entrants and relieving cost of living pressures for those with mortgages already.True, those with a pre-existing mortgage will save. But there are two…
