Silver lining: How a cooling property market is protecting borrowers

Four straight months of falling home prices across Australia may be a blessing in disguise for borrowers juggling mortgage repayments and the rising cost of living.The latest meeting of the Reserve Bank’s monetary policy board this week saw no change to the 4.35% cash rate, which has been steady since early May.In the months since, the barrage of property tax changes, hot inflation, elevated interest rates and global volatility has coincided with the property market taking a hit.National home prices are now sitting 1.8% lower than they were in March, realestate.com.au data shows, led by falling values in the mega markets of Sydney and Melbourne.With inflation beginning to soften however, borrowers have escaped rising minimum home loan repayments for the last three months, and the Reserve Bank has suggested more relief could be on the cards.Speaking in Sydney on Thursday, RBA assistant governor Christopher Kent said the softening market conditions heavily reduced the need for further rate rises.RBA assistant governor Christopher Kent (L). Picture: AFP Photo/Peter Parks.“The housing market plays an important role in the transmission of monetary policy through to consumption and inves...