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  • 10 hours ago
There's growing frustration among households as they look for ways to absorb the reserve bank’s third rate rise this year. Mortgage borrowers are shouldering most of the burden to tame inflation. But there are warnings of even tougher times ahead if inflation doesn't come down soon.

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00:02Out in the suburbs, the stress of paying off a mortgage is on people's minds.
00:07We'll need to again revisit the monthly costing, where we can cut unnecessarily.
00:14Everything is just going up and up and up and nothing's coming down.
00:17A lot of people will end up losing their homes.
00:20Data from Roy Morgan shows there are more than 1.6 million people at risk of mortgage stress because of
00:27the latest rate rise.
00:28For some people it will be the straw that broke the camel's back.
00:32The latest hike takes the cash rate back to where it was at the start of 2025.
00:37If it's increased again to 4.6% the highest level in close to 15 years,
00:44a homeowner with a $750,000 mortgage will be paying $455 more a month than they were when the RBA
00:53began lifting rates in February.
00:55Given the inflation concerns, they probably will go again in August.
00:59As borrowers brace for the likelihood of more interest rate rises, the economy is expected to slow substantially.
01:07Economists say an ongoing war in the Middle East has also increased the risk of a recession.
01:14I'd say it's increased significantly if you go back through history.
01:17This combination of high oil prices and high interest rates can often be associated with recession.
01:24In Hobart, retirees who have lived through a recession and paid off their mortgage are concerned.
01:30I feel for it for my daughters. Both of my daughters have mortgages.
01:35And when the interest rates go up like they have, I feel sorry for these people.
01:39As the economic wrecking ball continues.
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01:42Thanks for having me get down the call.
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01:43You're thinking?
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