When the property market could reach a tipping point
The property market could reach a tipping point if the Reserve Bank lifts the cash rate to 4 per cent or above, economists warn, as high mortgage costs reach a critical level for some households.
Economists differ on just how biting the rate rises will be for household budgets and the wider economy, but some are concerned about the possibility of a 4 per cent cash rate.
Buyers who borrowed in the past two years were stress-tested on their ability to repay their loans with a 2.5 per cent or 3 per cent buffer — a level already exceeded by the recent hikes that have taken the cash rate to 3.6 per cent.
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