Kim Carr (Victoria, Australian Labor Party, Shadow Minister for Housing and Urban Development) Share this | Hansard source

My question is to Senator Minchin, the Minister representing the Treasurer. Is the minister aware that the latest HIA-Commonwealth Bank Affordability Report shows that housing affordability is now at its lowest level since December 2003? Hasn’t the HIA also said, ‘Housing affordability is at critically low levels everywhere across Australia and is suffering an additional hit in 2006 because of higher interest rates’? Given that the industry has blamed recent interest rate hikes for the ‘critically low levels’ of housing affordability, why has the Prime Minister given the green light to yet another increase in rates? Won’t another rate rise simply add to the $2,000 a month that many low- and middle-income families are already paying on their mortgages? How does adding even more money to mortgage repayments make it easier for young Australians to buy a home?