OECD says Australia must lift interest rates to cool housing market
Australians may face higher interest rates next year, as the The Organisation for Economic Cooperation and Development warns of the need to "unwind tensions" in the housing market.
"Any speculation that mortgage rates are set to rise is likely to dampen activity in the housing market," says Tim Lawless, research director, CoreLogic.
The latest Australian Bureau of Statistics data shows the total value of mortgage lending in July 2016 was $31.8 billion, or 1.8% lower than mortgage lending in June 2016, and down 4.1% from the peak of $33.2 billion recorded in April 2015.
The feasibility of syndicate investment is being realised due to the trend of bank’s loosening lending requirements on retail, industrial and commercial property.