🦘 Mortgage Stress at All-Time High, RBA Chief Suggests People May Need to Sell Homes, Monochrome to Launch Australian Ethereum ETF

G’day everyone!

Here’s what we’ve got in store for you today:

• Mortgage Stress at All-Time High

• RBA Chief Suggests People May Need to Sell Homes

• Monochrome to Launch Australian Ethereum ETF

Let’s have a look at the market snapshot before jumping into the news:

Mortgage Meltdown: 1.4 Million Aussies Feel the Pinch!

Hold onto your wallets, folks!

A recent report from Finder has dropped a concerning bombshell: mortgage stress in Australia is at an all-time high.

This August, over 1.4 million homeowners, or 42% of them, reported struggling to keep up with their home loan repayments.

To add to the woes, a staggering 13% have actually missed payments in the past six months.

With rising interest rates and climbing property costs proving tough to navigate, many are feeling overwhelmed.

Finder’s home loan expert Richard Whitten warns that a good chunk of income is now going straight to mortgage payments, with some households spending more than 30% of their take-home pay on just keeping a roof over their heads.

Meanwhile, the average mortgage has soared to $634,479, a hefty increase driven by high cash rates, which could make things even tougher for first-time buyers.

It's a rocky road ahead in the housing market!

Home Sweet Home? Not So Fast! RBA Says Sell for Some Australians

RBA Governor Michele Bullock is raising the alarm – more Australians are seeking help as the economy takes a hit and some might even need to sell their homes.

As the job market cools and costs rise, lower-income borrowers are feeling the pinch more than others.

Bullock highlighted that around 5% of those with variable-rate mortgages are grappling with a cashflow shortfall, meaning their essential spending plus mortgage payments exceed their income.

The interest rate hikes aimed at combating inflation, currently running at 3.8%, are making matters worse for many households.

Bullock emphasized the need to tackle inflation to help restore economic balance, but warned that the journey may take years.

In the meantime, renters should brace for continued high costs, with rises in both housing and services compounding the struggle.

Hang in there, it's a bumpy ride for the economy! 

Monochrome Aims to Launch Ethereum ETF, but Will It Make Waves?

Monochrome Asset Management is diving into the crypto space, looking to launch an Ethereum ETF on Cboe Australia under the ticker IETH.

This new ETF is designed to give everyday investors a regulated way to invest in Ethereum, and it even allows for cash or asset redemptions.

Monochrome has high hopes, with a decision on their application expected by the end of this month.

If they get the green light, it would significantly broaden the regulated crypto options available to Aussie investors, following their success with Australia’s first Bitcoin ETF, IBTC.

However, it’s worth noting that Ethereum ETFs have faced a rocky road in the U.S., with disappointing initial trading flows.

As the Ethereum market remains tricky, all eyes will be on whether Monochrome can turn the tide and make a splash down under!

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