In this week's Financial Services Online podcast, Paige Estritori discusses Australia's struggling housing market, driven by high mortgage interest rates that have led homeowners to dedicate a record 19.3% of income to loan repayments. The podcast cites Australia's preference for variable-rate mortgages as a contributing factor. Australians are also faced with an acknowledged inflation in the housing market, partly due to superannuation policies that allow borrowing for property investments. Declining housing loan commitments and a decrease in new home loan approvals underline the cooling market, yet nearly half of Australians still plan to buy property in the next five years. Estritori also notes the possibility of the Reserve Bank of Australia easing interest rates later this year, which could offer some relief.
