Reserve Bank of Australia (RBA) Financial Stability Review – housing unbalanced, discussing steps via ForexLive

• Housing unbalanced, discussing steps with regulators
• Strong investor demand can be sign of speculative excess
• Says discussing possible steps on home lending with APRA
• Investor loans out of proportion to rental housing market
• Housing and mortgage markets ‘becoming unbalanced'
• Banks need to ensure loans can be serviced if rates rise
• Steps discussed would ‘reinforce sound lending practices'
• Risk to financial institutions if lending growth persists
• Mortgage market risks likely to be macroeconomic
• Households' appetite for risk continues to grow in 2014

The full text is here: Financial Stability Review

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Note – APRA is the Australian Prudential Regulation Authority

posted via ForexLive