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Cautious Australians Ignore Rate Cuts as Housing Sags: Mortgages
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The Reserve Bank of Australia’s 125 basis points of interest rate cuts since November have failed to spur demand for mortgages, deepening concern one of the world’s costliest housing markets will extend its record decline.
The annual growth of outstanding home loans has slowed to the weakest pace since at least 1977 as Australians repay loans and boost savings instead of borrow for housing. Home prices are down 6.1 percent from their mid-2010 peak and have slumped for a record five-straight quarters.