Household spending down as interest rates bite
More signs are emerging that interest rates are starting to bite but the jury is still out on whether the worst case forecasts for property price falls will materialise.
As well as a clamour among economists and property sector experts to downgrade their forecasts for real estate prices, another compelling sign that interest rate rises are starting to bite has emerged.
Discretionary spending on entertainment, home buying and retail all declined over the past month, as households rein in their spending to offset the higher monthly mortgage and borrowing expenses.
The more interest rate sensitive sectors of the e…