More on the stress hitting the Australian housing market

Yesterday, I connected the end of the carry trade and stress on Australian bank margins. The point was that the withdrawal of global liquidity wasn't just affecting emerging markets in our interconnected global financial system. Australia is feeling it too, even though the Reserve Bank of Australia is on hold. Now let's look at the household side of things for a quick second.
The sources of stress on Australian housing
Here's a blurb from the Financial Times that encapsulates the problems borrowers are having:
Maggie Lu is one of thousands of borrowers hit by a credit squeeze, which has abruptly ended Australia’s housing boom and poses a risk to one of the world’s most successful economies.

“I got pre-approval for a mortgage last year but couldn’t find a house we could afford before it la...

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