Brace for a round of out-of-cycle mortgage rate hikes
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From the AFR:
Lenders are raising the cost of buying property by up to 60 basis points as the impact of the ‘Trump effect’ and growing expectation that central bankers are set to end the era of record low rates ripples through global markets.
Rising costs of funding debt are also widening the competitive gap between the big four, which can largely fund lending from customer deposits, and the smaller lenders that are more reliant on capital markets.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.