##ers matched with credit products and loan terms that fit their circumstances? are borrowers aware of the terms and conditions of their loans, and more generally, are consumers sufficiently well informed to be wary of potentially misleading marketing tactics and to shop effectively among lenders? some evidence, including recent federal reserve research on consumers holding adjustable - rate mortgages, suggests that awareness could be improved, particularly among borrowers with lower incomes and education levels. 3 this research suggests the need for greater financial literacy and increased access to financial counseling, a point to which i will return. the release this year and last of mortgage price data gathered under the home mortgage disclosure act ( hmda ) has highlighted a different, but potentially related, concern about access to credit on equal terms. the data show that blacks and hispanics are considerably more likely than other borrowers to receive higher - priced loans. 4 this finding has several possible - and not mutually exclusive explanations, ranging from illegal discrimination to the effects of legitimate pricing factors not captured in the hmda data, such as loan - to - value ratios and borrower credit history. of course, as an agency committed to the rigorous enforcement of the fair lending laws, our job is to distinguish legitimate from illegitimate sources of pricing differentials among the banking institutions we supervise. in our enforcement efforts, we analyze the hmda price disparities in conjunction with other information, such as the adequacy of the lender ’ s fair lending controls and the presence of business practices that may put lenders at risk for pricing discrimination. for example, a lender might offer its loan officers financial incentives that have the effect of inducing them to charge some applicants higher interest rates or to “ steer ” them to higher - priced loan products. lenders at risk for pricing discrimination receive targeted reviews of their pricing to ensure that they are complying with fair lending laws. loan price disparities, however, are not just a legal and supervisory issue. they also raise important social and policy concerns. the questions i raised earlier about access to prime products, lender competition, and borrower awareness and financial literacy may well be relevant to understanding the price disparities we observe. further research to explore these questions and their possible connection to disparities in lending to members of minority groups would be highly worthwhile. in fact, the federal reserve ’ s upcoming community affairs research conference will feature several papers that explore these issues. 5 estimates are based on information from inside mortgage finance publications ( 2005 and earlier

gdp and 35 per cent of our exports, so it is important. reflecting this, this is my third trip to, and public speech in, perth in the past year. this morning we heard that while the western australian economy is still feeling the effects of a decline in the level of mining investment, there are some positive signs. the level of mining investment has further to fall as some large liquefied natural gas projects are completed. but elsewhere in the resources sector things are looking brighter. sustaining capital expenditure, particularly in the iron ore sector, is picking up with positive spillover effects. higher prices for a number of minerals have also led to increased exploration activity, including for gold and lithium, and an expansion of some existing mines is taking place. for the first time in a number of years, we are hearing reports through our liaison program in western australia that it is difficult for firms to find workers with the right skills, including project engineers and related occupations. business conditions – as measured by surveys – have also risen significantly and are now above average. at our meeting, we also discussed the population dynamics here in western australia. at the peak of the resources boom, annual population growth reached almost 3½ per cent, which is very fast. people moved here from overseas and from the rest of australia to meet the needs of your rapidly growing economy. in contrast, over the past year, population growth has slowed sharply, to around ¾ per cent, which is almost the slowest of any state in the country. there is now a considerable net flow of people from western australia to the eastern states. this change in population dynamics has had a significant effect on housing markets in western 3 / 4 bis central bankers'speeches australia. the earlier strong growth in population contributed to a sharp rise in housing prices and rents, and then a bit later to a surge in housing construction. with the resources boom now in the past, some of the earlier increases in prices and rents have been reversed and residential construction activity has been low. western australia has seen this type of cycle before, and i expect it will see it again at some point in the future. our liaison, though, suggests that a stabilisation of conditions is in prospect. if so, this should help support consumer confidence and household spending and reinforce the recent more positive news from the resources sector. finally, as i mentioned earlier, we are currently upgrading australia's banknotes. i am pleased to be able to announce that the new $ 50 note will