Do low interest rates make houses more affordable?

There’s something that intrigues me about the financing behind the house price xxxxxx (rhymes with double) going on in Sydney, Melbourne and other parts of Australia.The commentary in the personal finance media and behaviour from house buyers suggest a widespread belief—that when Glenn Stevens lowers interest rates 25 basis points, buyers can afford to pay more for the 2-bedroom fixer upper that they and 40 other people desperately want to buy.But can they afford more?In Australia most buyers, whether owner/occupier or investor, utilise plenty of debt. And all Australian mortgages are effectively floating rate—even if you fix the first five years...

There’s something that intrigues me about the financing behind the house price xxxxxx (rhymes with double) going on in Sydney, Melbourne and other parts of Australia.

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