Housing affordability and serviceability will continue to improve throughout 2012, Fitch Ratings' managing director and head of APAC structured finance Ben McCarthy has claimed.
According to Mr McCarthy, last year's interest rate falls have definitely helped improve both affordability and mortgage serviceability.
"We are starting to see arrears trend downwards thanks the latest interest rate falls," he told Smart Property Investment's sister publication The Adviser.
"We are also starting to see housing affordability improve as a result of the interest rate cuts."
But the interest rate cuts are not the only factor at play when it comes to housing affordability, Mr McCarthy said.
"The Global Financial Crisis had a huge impact on consumer confidence, which has ultimately forced house prices to fall.
"Property prices in Australia's holiday destinations have fallen significantly. There is stress in the market and, as such, people aren't looking for a second home."
Mr McCarthy is one of the key note speakers at this year's Australian Mortgage Conference, which will be held at the Sofitel Wentworth Sydney on Thursday 23 February.