Home buyers caught off guard by interest rate rises.

by Rachel Seymour 18/03/2008

New figures released by PMI Australia, a mortgage insurer and a subsidiary of the American mortgage insurance company show the number of mortgage defaults in the last 12 months is up almost 17%. Due to and driven by rising interested rates, declining property prices and with higher inflation and a slowing economy, many home buyers are beginning to feel the pinch.

The revelations also follow a JPMorgan/Fujitsu Australian Mortgage Industry report last week suggesting that more than 700,000 households would experience some degree of mortgage stress by June, resulting in forced sales, missed repayments and foreclosures.

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source: The Age
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