Rate cuts and surging house prices: ‘How the hell does that work?!’

There’s two separate but related stories in all the newspapers this morning.

Story #1: Interest rates are at historic lows

Story #2: Property prices are surging

And it’s got Ross baffled.

“How can that make any sense?” he asked Burnso this morning.

“So I can go to a bank today and say ‘I want to borrow some money to buy a house, how much will that cost me?’

“And then they will respond ‘Virtually nothing’, and I’ll say ‘That’s great, because I’m going to go buy a house and make an absolute motza

“Surely that is a house of cards?”

The boys called on Herald Sun finance expert Terry McCrann to make sense of it.

He did his best, before declaring it is a “weird, weird world … this can’t last, it inverts reality”.

“None of this is going to last.”

Click PLAY for the full chat

(Photo: PETER PARKS/AFP/Getty Images)