house prices
(Image: AAP/Lukas Coch)

Prudential regulators moved this morning to tighten "macro-prudential" controls on lending -- the Australian Prudential Regulation Authority lifting from 2.5% to 3% the interest buffer it wants banks to use when assessing how much borrowers can safely service.

“While the banking system is well capitalised and lending standards overall have held up, increases in the share of heavily indebted borrowers, and leverage in the household sector more broadly, mean that medium-term risks to financial stability are building," APRA chair Wayne Byres said.

The move has nothing to do with housing affordability -- but because of our media myopia about property it will be seen entirely through that lens.