Energy, not wages nor mortgage cliff, can crash house prices

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More dreadful analysis from the AFR today.

One factor behind the delayed reaction of households [to rate hikes] has been the so-called fixed-rate mortgage cliff. There’s been so much said and written about the fact that billions of home loans will switch from low fixed rates to higher floating rates, we may be forgiven for believing the threat had passed.

…By the end of the year, 50 per cent of those cheap fixed-rate loans will be refinanced, representing about 17 per cent of all mortgages.

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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.