Glenn Stevens RBA is upbeat on the economy saying we are more resilient and implying consumers should be less worried.
He also noted that housing affordability has returned to 2002 levels as shown in the graph below reproduced from the AFR article today. While that is good news for the sustainability of housing prices, he also implied that there is now less reason to consider reducing interest rates further, in the near future.
At about 23% of income, mortgage repayments are reasonable at present levels.
