Fewer loans and more distressed sales as interest rates bite
Escalating interest rates are driving people away from the property market, with new home loans and building approvals plunging and distressed sales by indebted homeowners rising sharply.
The number of distressed listings has risen by more than 15 per cent since interest rates started climbing in May. (Image source: Shutterstock.com)
Rising interest rates are deterring potential borrowers and driving many existing ones to the financial brink.
Mortgage lending in Australia has fallen for the fourth month in a row, with first-home buyer loans fell 9.3 per cent, while investor loans fell 6 per cent during the period, the Australian Bureau of Statistics (ABS) revealed on Wednesday (2 November).
For existing borrowers, the continual run of interest rate hikes
is driving many to …
