the economist and the housing bubble, page-7

the risk to the housing market is interest rates.

the US lifted rates last week again and have signalled further increases.

IF inflation moves beyond the reserves target range....rates will continue to move higher.

And expect rates to move in Aussie along with them....not in isolation from them.

if this occurs.........defaults on loans will be huge and widespread.

its not so much the percentile increase....its the effect on the loan amount which are at historical highs.

its going to be tough to get a soft landing in this economic cycle for this reason alone.