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While interest rate cuts have helped ease mortgage stress close to one million households could experience it by mid-2009 as rising unemployment takes its toll, according to Fujtisu Consulting.
Fujitsu Consulting’s latest Mortgage Stress-O-Meter, released yesterday, revealed that mortgage stress levels had fallen by 23 per cent over the past four months to 680,000 compared to 882,000 in August this year.
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However according to Fujitsu’s forecasts, 960,000 households could suffer mortgage stress by June 2009 as unemployment rises and fails to offset the RBA’s rate cuts.
Young families will continue to be the largest sufferers of mortgage stress, the report predicts, followed by “disadvantaged fringe” households – low income households in peripheral urban or rural locations.
The “battling urban” demographic – limited income households in high density urban areas – will also struggle, the report said.
Earlier this week the Housing Industry Association (HIA) said households suffering mortgage stress had fallen to 584,354, according to its calculating methods, however it also warned that “weaker employment prospects could undo this good news”.
