Australia s Council of Financial Regulators believes "most households" are managing despite soaring cost of living pressures, suggesting more interest rates hikes could be on the horizon.
Australia s Council of Financial Regulators is holding households "prisoner" by keeping the mortgage serviceability rate at three percent says economist Leith van Onselen.
Macro-prudential action likely this year, ANZ predicts smartpropertyinvestment.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smartpropertyinvestment.com.au Daily Mail and Mail on Sunday newspapers.
A file photo of houses in Melbourne - AAP
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The amount of outstanding mortgages in Australia grew by the fastest monthly pace in four years.
But economists doubt financial regulators will be too concerned at this stage with investor loans still relatively subdued.
New figures from the Reserve Bank of Australia showed housing credit grew by 0.6 per cent in May, the largest rise since June 2017.
Annual growth now stands at 4.8 per cent, its highest since 2018.
Owner-occupier loans rose 0.7 per cent in the month to 6.6 per cent, also the highest year rate since 2018.
However, growth in loans to housing investors remained relatively modest, rising 0.4 per cent in May to 1.6 per cent.