Australian Homeowners Vent Anger Online as Interest Rates and Listings Rise

Australian homeowners are furious with the big banks for suddenly increasing their variable mortgage interest rates.

Home prices in Australia are crashing. Western Sydney is Ground Zero in the Interest-Only Mortgage Bust.

“Sydney residential property listings are now at the highest level recorded since February 2009, surpassing the peak in listings recorded during the 2010-12 housing downturn,” said Louis Christopher, Managing Director of SQM Research.

Whose Fault is This?

Whose fault is it that people ridiculously over-paid for houses with variable interest rates?

I suggest it's theirs. Yet, as one might expect from human nature and bubble investing, a Rate Rise Fury Swamps Australia with Many Homeowners Venting their Frustrations Online.

In the last week, many of Australia’s banks, including three of the Big Four, slid up their variable mortgage interest rates. Westpac by 0.14 percentage points, Commonwealth by 0.15 percentage points, and ANZ by 0.16 percentage points.

Australia is furious. Social media is overflowing with people calling banks things we simply cannot reprint in a family website.

It is not just Facebook and Twitter that are on fire. Swiss investment bank UBS has accused the Australian banking sector of being an uncompetitive feather bed where big banks can raise profits with a flick of the wrist.

“Today’s announcements demonstrate the oligopolistic nature of the Australian banks and their ability to pass on additional funding costs and more to their customers,” said UBS analyst Jonathan Mott and colleagues in a note to clients.

What a hoot.

Of course, the Reserve Bank of Australia kept interest rates too low, too long, creating a bubble. Yet, presumably Australians can read.

They totally ignored what happened in the US. Australia was supposedly different. It wasn't. Home prices are now crashing, finally, so it's time to place the blame. Elsewhere. People seldom self-assess.

Mike "Mish" Shedlock

Comments
No. 1-7
KidHorn
KidHorn

What choice did a homeowner have? Either way overpay for a home or way overpay in rent. People have to live somewhere. Maybe they could have moved somewhere with low housing costs and no jobs. I blame the central banks. If the central banks didn't provide unlimited credit at low interest, there would not have been enough money for home prices to skyrocket.

killben
killben

Does Australia have mark-to-market accounting or like in the US since March 2009, it is mark-to-fantasy accounting? If it is mark-to-market, they have a tool to handle any crisis. Also they can call on the three musketeers, Paulson, Bernanke and Geithner, who have the experience of saving the world and have been preening about it lately. Since Australia also has the printing press (unlike EU countries), RBA can take on board "Housing never falls and Shower money" Bernanke. He will have the courage to act unlike the Australians.

SweetKenny
SweetKenny

Canada is next within next 6 months.

2banana
2banana

House speculators are going to find out what an adjustable full recourse loan truly is.

And how hungry the alligator (croc) is...

Webej
Webej

Let's hope everybody leaves the banks in the lurch, since they are in it as much as the home-owners who thought they were going to get a free ride (appreciation).

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