// Breaking News //

The Reserve Bank of Australia (RBA) has kept interest rates on hold at 3.85%, dashing hopes of relief for mortgage holders as house prices soar to record highs and loan defaults spike in key suburbs.

 

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�� #1: RBA’s Decision – Why No Rate Cut?

Inflation "stubborn": While headline CPI dropped to 2.1% (May 2025), core inflation remains at 2.4%—still above RBA’s 2-3% target.

Global uncertainty: Trade tensions and weak demand weigh on the outlook.

6-3 vote to hold rates, signaling caution despite economic strain.

 

�� RBA Statement:
"With rates already down 50bps since late 2024, we need more data to confirm inflation is sustainably returning to target."

 

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�� #2: Mortgage Stress Crisis – These Suburbs Are Suffering

�� Worst-Hit Areas (March 2025 Data):

State	Suburb	Mortgage Delinquency Rate
VIC	Craigieburn	3.10% (highest in Australia)
VIC	Caroline Springs	2.8%
NSW	Blacktown	2.5%
NSW	Liverpool	2.3%

Why?

Young families in outer suburbs face high debt-to-income ratios.

WA improves (0.86% delinquency) as mining rebound lifts home values.

�� National Trends:

VIC (1.17%) and NSW (1.07%) worst-performing states.

CoreLogic: "We may be near the peak of mortgage stress."

 

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�� What’s Next?

No rate cuts until 2026? Economists split on RBA’s next move.

House prices keep rising: Low supply offsets high rates.

Renters squeezed too: Vacancy rates at record lows.

⚠️ Warning: If unemployment rises, delinquencies could surge again.