Fixed rates on the up
The latest mortgage rate figures from the RBA confirmed what we already knew, namely that fixed mortgage rates are on the rise.
Variable rates were still ticking down in January.
The household debt to income ratio ticked ack up to 1.846x, which is still well below 2018 levels.
What rarely seems to be mentioned is that net of offset facilities the ratio has barely budged in 15 years.
Moreover, household assets to income ratio has never been higher, at about 1,100 per cent.
Due to rising food and energy costs households are now likely to feel some cost of living pressures.
Thankfully due to mortgage refinancing and the use of offset accounts, the household interest payments to disposable income ratio declined further to 5.22 per cent.
That's the lowest ratio since records began in March 1977.
