By Gareth Aird, senior economist at CBA:
Key Points
- RBA cuts to the cash rate have generated both a lift in new housing‑related lending and an acceleration in debt repayment.
- We expect national dwelling prices will continue to grow faster than household income in 2020 but any increase in household leverage is likely to be modest.
- Households are using lower mortgage rates to speed up debt repayment and housing equity injection sits at a 30‑year high.