Counting the costs of the US crisis
Article by Mozo
While Wall Street reels from the recent financial crisis and many markets around the world wobble, many Aussies may be left wondering how it will affect them.
According to the Age, one of the biggest impacts will be on the availability of low interest home loans.
The paper’s money expert Marc Moncrief has pointed out that as banks become wary of running into debt, the number of home loans on the market is likely to shrink.
In turn, this could lead house prices downward as first-home buyers struggle to find the funds to make an offer and get on to the property ladder.
However, Moncrief added: “Through it all, it is important to take some heart. It’s not as if the bank has just foreclosed on the whole neighbourhood, as has been happening in the US.”
Indeed, news.com.au has noted that the banks have bounced back strongly from the US crisis, pushing the national share market up, suggesting that they may well remain willing to lend.