Mortgage stress levels among Australians continue to increase during COVID-19 outbreak, according to a study by the Digital Finance Analytics.

According to the study, 38% of households were “cash-flow stressed” in April and the share of households in mortgage stress could be 41% by August.

However, the COVID-19 outbreak has led to a shift in financial policy  that will ensure low-cost debt to continue supporting spending, according to a report from CoreLogic.

Rate cuts tend to have an inflationary impact on house prices. For instance, a 1% reduction could push property prices up by 8% over two years.

Australians who want breaking into the housing market should act fast to take advantage of the current market conditions, according to inSynergy.

Richard Sheppard, chief property investment advisor at inSynergy said would-be buyers who decide to take the leap in the next few months would be able to enjoy prices that are about 3% to 7% lower than a month ago.

GOOD NEWS

• First-home buyers who were not able to secure a spot in the federal government’s First Home Loan Deposit Scheme will have a chance to apply again, with 10,000 slots slated to be open in July.

• New scheme that will provide owner-occupiers and first-home buyers with a cash grant to help them construct a new house or renovate their existing property.