Just here in Queensland, many analysts say near 200,000 mortgages were super sensitive to ANY mortgage rate rise.
The near defaults right now range from 10,000 to 20,000. Banks won’t reveal how many households are currently in negotiations to try and save themselves from repossession action.
The huge number of loans, especially in “Nappy land” about to reset from Interest Only Honeymoon rate to Principal and Interest Penalty rate will ensure blood in the streets and a domino effect on the market.
I keep saying it. Wait til rates rise 1 full percent and see what happens!