Frydenberg Reassures Confidence in Australia's Housing Market..
Australian Treasurer, Josh Frydenberg, conducted meetings with the RBA and the prudential regulator over Australia’s current booming property market, maintaining that they are very confident in the current state of the market.
Housing Markets Reaching All Time Highs..
Recent reports on the market indicate that house prices have increased to record highs in 32 years, while home lending and building approvals are also close to record highs. Treasurer Frydenberg warned that both the RBA and the Australian prudential authority have the tools required to put in place limits for banks if need be, to ensure lending standards are upheld.
RBA Governor Philip Lowe reiterated the strength of the housing market, saying that prices have risen in most jurisdictions and housing credit growth to owner-occupiers has picked up, with a strong demand from first home buyers.
Frydenberg stated that historically low interest rates are supporting first homebuyers to invest in the market, and believes that if the value of Australian’s homes continues to rise, it'll give them more confidence to spend. The boost in the property market is also helping support the construction industry, with new orders, employment and supplier deliveries also reaching record highs.
AUD/USD catches fresh bids as it moves closer towards the 0.7700 mark. USD weakness alongside higher S&P 500 futures bodes well for the AUD. The spot was last seen trading at 0.7674, adding 0.17% on a daily basis.