Australia’s falling house prices have a silver lining for mortgage holders. Here’s why

The RBA’s governor, Michele Bullock, has made it clear that the ‘easing’ property market is on her mind Get our breaking news email, free app or daily news podcast It is the silver lining that’s not making headlines: falling home prices mean another Reserve Bank rate hike is less likely. RBA board members will not be sitting on Monday and Tuesday discussing ways to prop up Sydney house values. Even so, the RBA’s governor, Michele Bullock, has made it clear that property is on her mind. The central bank always expected conditions “to ease” in response to the rate hikes in February, March and May, Bullock said last week – after all, that’s usually how these things work. “But the housing market has eased by more than we had anticipated in May,” she said. “This appears to reflect a range of factors, including recent policy developments affecting the housing market, and a general softening in housing market sentiment.” By “recent policy developments”, she means the changes in the budget to property taxes. Johnathan McMenamin, a senior economist at Barrenjoey, told News24 on Monday that the RBA board will “try and play down the housing market to some degre