In news this month, one point of focus was the release of the Royal Commission’s final report. On a positive note, it seems no further tightening of lending policies will be needed, according to AMP Capital chief economist Shane Oliver. Instead, attention will be on maintaining the new standards already implemented by lenders in the lead-up to this report.
Executive chairman of Loan Market Group Sam White believes a more consistent loan approval process should help build confidence in seeking finance approval. It’s too early to see this though, with CoreLogic reporting that weakening demand for mortgages continues.
Cameron Kusher of CoreLogic says if housing price relief is needed in light of the declining housing market, we could be seeing the RBA cut rates and the APRA actually relax lending conditions somewhat. Westpac’s Chief Economist Bill Evans has now priced in a further 2 rate cuts before the year is out.
CoreLogic’s Cameron Kusher commented on the minutes of the RBA Monetary Policy Meeting for February 2019, suggesting that concerns over falling housing values are having a knock-on effect to household consumption and therefore, we may also see this impacting our nation’s economic growth.
Download and read the full Market Essentials – March 2019 Report.