Cold this be the trigger that burst the housing bubble?

https://au.finance.yahoo.com/news/banks-likely-raise-mortgage-rates-051316839.html


Quote:

Homeowners are likely to be hit by another out-of-cycle rate hike as banks pass on higher funding costs. The official interest rate remains at a record low but market watchers expect the major banks will hike variable mortgage rates this year regardless of any Reserve Bank of Australia action. "It's a very strong possibility that we'll see more out-of-cycle rate hikes this year as lenders address funding cost pressures," comparison site Mozo.com.au director Kirsty Lamont told AAP. The major banks lifted variable mortgage rates in November to offset costs linked to new requirements to hold more capital against home lending to absorb possible losses. Ms Lamont said the capital adequacy requirements continued to flow through the system, causing funding cost pressures, while some lenders were also reporting increases in wholesale funding costs. Mortgage broker 1300HomeLoan managing director John Kolenda said it is highly likely the banks will hike rates this quarter, before the capital requirement change comes into effect on July 1. "With the additional cost of funding, they won't have any choice but to pass that cost on," he said. The RBA kept the cash rate on hold at two per cent on Tuesday but has warned the soaring Australian dollar could threaten the non-mining economy's recovery. Mr Kolenda said the RBA is likely to lower the cash rate this quarter but the central bank's actions could be made redundant by the major lenders lifting their rates out of cycle. Ms Lamont expects a RBA cut at some stage within the next six months, but warns borrowers may not see the benefit of any reduction. "If the RBA cuts rates before lenders have adjusted rates themselves then it's likely that lenders might hold back some or all of any cut that the RBA passes through." Mr Kolenda said the coming hike in variable mortgage rates could be in the order of 15-30 basis points, after a rise of up to 29 basis points last year, and an increase of up to 49 basis points for investor loans. Ms Lamont said borrowers should consider fixing part or all of their home loan as the gap between fixed and variable rates has widened over the last few months, to the point where average fixed rates across all terms are now lower than average variable rates.

It's already happening !!


Quote:

Bank of Queensland raises interest rates Bank of Queensland has lifted its variable home loan interest rates amid industry uncertainty as the regional lender delivers a rise in first-half profit, driven by strong mortgage growth. Chief executive Jon Sutton says the changes are needed to balance growth, risk and margins over the longer term. 'This is not a decision that was made lightly and we were very mindful of the impact on our customers even in an environment where interest rates remain at very low levels,' Mr Sutton said in a statement on Thursday. 'However, given the fiercely competitive market and increased funding spreads and hedging costs, these increases are necessary to help us achieve the appropriate balance between growth, asset quality and profitability.' BOQ has increased its variable home loan interest rates by 12 basis points for owner-occupied loans and 25 basis points for investor loans, effective April 15. The Reserve Bank of Australia on Tuesday left the benchmark interest rate unchanged at a record low of two per cent. Meanwhile, Bank of Queensland on Thursday booked a 7.2 per cent rise in cash profit - the main figure the banking sector focuses on - to $179 million for the six months to February 29, compared to the same time last year, thanks to strong mortgage demand. Net profit rose 11 per cent to $171 million, helped by a four per cent rise in revenue to $561 million. Mr Sutton said the bank's interim results were driven by housing lending growth and strong asset quality levels. The bank also maintained its net interest margin at 1.97 per cent and kept costs under control. 'Over the half, we continued to make good strategic progress while successfully balancing our growth, margin and risk priorities in a market featuring high levels of competition, volatile wholesale funding markets and regulatory uncertainty,' Mr Sutton said. BOQ's interim dividend rose two cents to 38 cents a share, fully franked. BANK OF QUEENSLAND PROFIT UP Net profit rose 11pct to $171m, vs $154m a year ago Revenue rose 4pct to $561m, vs $537m a year ago Interim dividend rose 5.55pct, to 38 cents a share

http://www.skynews.com.au/business/business/market/2016/04/07/bank-of-queensland-raises-interest-rates.html#sthash.7FvHFh20.dpuf

Sir lastnail wrote on Apr 7^th, 2016 at 12:53pm:

12 basis points

Wow 12 basis points - 0.12%. How will they cope? 4.6 to 4.72%. Remember 17%?

lee wrote on Apr 7^th, 2016 at 1:42pm:

Sir lastnail wrote on Apr 7th, 2016 at 12:53pm: 12 basis points Wow 12 basis points - 0.12%. How will they cope? 4.6 to 4.72%. Remember 17%?

Jesus! Jesus?

lee wrote on Apr 7^th, 2016 at 1:42pm:

Sir lastnail wrote on Apr 7th, 2016 at 12:53pm: 12 basis points Wow 12 basis points - 0.12%. How will they cope? 4.6 to 4.72%. Remember 17%?

and how much were houses then and what was the house price to income ratio then ?

Sir lastnail wrote on Apr 7^th, 2016 at 3:08pm:

lee wrote on Apr 7th, 2016 at 1:42pm: Sir lastnail wrote on Apr 7th, 2016 at 12:53pm: 12 basis points Wow 12 basis points - 0.12%. How will they cope? 4.6 to 4.72%. Remember 17%? and how much were houses then and what was the house price to income ratio then ?

I dont know. Tell us.

The Chinese keep pushing up the prices:

http://www.realestate.com.au/blog/australias-most-expensive-suburbs-in-2015/


Quote:

“Around 30% of the top end eastern Sydney market are Chinese buyers. Five or six years ago it was significantly less, around 5%. Other than that it’s locals that have done well in business or mining, doctors and other professionals.

https://www.realestate.com.au/blog/wp-content/uploads/2015/12/Darling-Point-550.jpg

1. Darling Point, NSW – $5,651,000

Bobby. wrote on Apr 7^th, 2016 at 10:55pm:

The Chinese keep pushing up the prices: http://www.realestate.com.au/blog/australias-most-expensive-suburbs-in-2015/ Quote: “Around 30% of the top end eastern Sydney market are Chinese buyers. Five or six years ago it was significantly less, around 5%. Other than that it’s locals that have done well in business or mining, doctors and other professionals. https://www.realestate.com.au/blog/wp-content/uploads/2015/12/Darling-Point-550.jpg 1. Darling Point, NSW – $5,651,000

For all of the billions brought into the country by the chinese none of it has been used to create real industries for the benefit of others except if you are a dumbarse trady. We have a steel industry about to die followed by the car industry and the only thing the chinese buy into is property, fish and chip shops and coffee shops whilst they keep the top shelf industries back in china. Most of them come here for the lifestyle whilst running their businesses back in china by remote control.

How has this been allow to happen ? Real estate scum have been shaping these policies for years :(

I am gambling that the bubble won't burst.
I want to buy a house soon.
However:
I don't expect the prices to double again in the next 5 to 7 years.

Sir lastnail wrote on Apr 8^th, 2016 at 8:50am:

Bobby. wrote on Apr 7th, 2016 at 10:55pm: The Chinese keep pushing up the prices: http://www.realestate.com.au/blog/australias-most-expensive-suburbs-in-2015/ Quote: “Around 30% of the top end eastern Sydney market are Chinese buyers. Five or six years ago it was significantly less, around 5%. Other than that it’s locals that have done well in business or mining, doctors and other professionals. https://www.realestate.com.au/blog/wp-content/uploads/2015/12/Darling-Point-550.jpg 1. Darling Point, NSW – $5,651,000 For all of the billions brought into the country by the chinese none of it has been used to create real industries for the benefit of others except if you are a dumbarse trady. We have a steel industry about to die followed by the car industry and the only thing the chinese buy into is property, fish and chip shops and coffee shops whilst they keep the top shelf industries back in china. Most of them come here for the lifestyle whilst running their businesses back in china by remote control. How has this been allow to happen ? Real estate scum have been shaping these policies for years :(

Its alright. They're going to buy Arrium's balls and cadaver.