Mining boom partly blamed for greater mortgage interest rate rises
Australia’s mining industry is a main driver of the nation’s low-wage economy, a new report has said.
The National Institute for Research and Education (NIR) said the economic impact of mining from the late-1990s to 2015 – and a subsequent fall in average house prices – were largely blamed for an overall increase in mortgage interest rates.
NIR deputy president Stephen O’Reilly said the decline in house prices also contributed to increased mortgage interest rates.
“The increase in interest rates is a bit like water rising in a bucket, it seems,” Mr O’Reilly said in a speech in Canberra.
“The water is higher in the bucket and it keeps rising.”
NIR’s research team of researchers examined the effect of mortgage rates on the average in포커terest rate in seven Australian states and two regions between 1998 and 2014 and found a rise in interest rates is associated with a lower average home price.
Mr O’Reilly said the main reason충주출장마사지 for the high increases was the “substantial drop in mining mining investment”, but he suggested the decrease in the boom was also to blame.
The boom, which brought economic and industrial growth, began at a time when interest rates were low, but has since climbed and hit a record high.
Mr O’Reilly said the fall in house prices and the decline in mining employment had the same effects on average interest rates, with increased household debt levels driving up house prices by about one-third.
“When it is $200,000 [that g블랙 잭oes], there is about a $10,000 to $15,000 (the average interest rate) increase, so if you borrow $50,000 it may be the $2,400 to $3,000 increase in debt that pushes $10,000 of the $10,000 you have to pay back.”
He said this increased household debt would affect borrowers at a younger age and increase future debts.
“When you’re living a couple of years off a couple of dollars of income in house prices, so when you’re having the baby or whatever, it will be much worse if you’re paying off $300,000, $400,000 debt at 33.33% interest rates,” Mr O’Reilly said.
“The result is you will probably be facing that higher cost of living when you retire than when you are living at home.”
Mr O’Reilly said the lower average house prices contributed to increase