How might rising mortgage stress affect ASX-listed banking and real estate stocks?
- Submitted by 1 day ago
Yes, elevated mortgage stress can significantly influence ASX-listed companies, particularly banks like CBA (ASX: CBA), Westpac (ASX: WBC), and NAB (ASX: NAB). Higher default risk or delayed repayments tend to raise provisioning levels, which may pressure profit margins. It can also lead to more conservative lending practices, slowing credit growth.
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It could also affect real estate investment trusts (REITs) and property developers. Stocks like Stockland (ASX: SGP) and Mirvac Group (ASX: MGR) may see reduced buyer activity if borrowing becomes more difficult or unaffordable. Housing sentiment can directly affect their sales pipeline and project launches.
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Another aspect is consumer spending. With more income going toward mortgages, discretionary sectors might feel the pinch too. This could impact retail-focused stocks and financial service providers exposed to consumer lending. Keep an eye on earnings guidance updates in the coming reporting season.
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Higher mortgage rates usually put pressure on consumer borrowing, which can weigh on ASX-listed banks like CBA, WBC, and ANZ. Lending activity tends to slow down, and loan margins may shift depending on deposit growth and cost of funds.
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