HOUSING MARKET ABOUT TO COLLAPSE Interest rates cut unlikely economists say, as data shows rise in home loans Economists say housing and employment indicators are likely to factor in Reserve Banks decision on interest rates. As such the housing market is coming to an abrupt end, with a predicted 20% correction by late 2014. Blythe said interest rates were likely to rise from the current record low level of 2.5% in late 2014 as a weakening Australian dollar added to inflationary pressures. But National Australia Bank senior economist Spiros Papadopoulos said that although the housing market was strengthening, it would not be enough to rebalance the economy as the mining investment boom winds down. Unemployment would continue to rise, meaning the Reserve Bank of Australia would be unlikely to raise the cash rate this year, he said. This is another indicator that points to the strength in the housing market, alongside rising house prices, Papadopoulos said.
Posted on: Sat, 01 Feb 2014 07:14:02 +0000
Trending Topics
Recently Viewed Topics
© 2015