The RBA took a favourable view of the household sector, saying "risks have ameliorated somewhat since the previous Review as housing price growth has eased," before going on to praise industry reforms in which it had a guiding hand."Importantly, banks have further tightened lending standards on mortgages," the RBA said."Attitudes toward investing in housing appear to have adjusted to the softer housing market conditions, with investors less active in the housing market compared with a few months ago. "The tightening in lending standards has put recent borrowers on a sounder footing to cope with any deterioration in economic conditions, fall in housing prices or individual adverse events. "Overall indicators of household resilience remain sound, supported by solid employment growth," as well as what the RBA described as "low interest rates".Households continue to save a greater share of their income than in the decade or so prior to the financial crisis.Mortgage prepayments are around 17 per cent of outstanding loan balances, which is equivalent to two and a half years of scheduled repayments at current interest rates.It is not all good news. The RBA said the gross debt-to-income ratio had risen from "already high levels" as households take on more debt and income growth slows. And the RBA noted that "recently… competition for investor loans has strengthened with many ADIs increasing discounting and lowering advertised rates for investors."