Stabilising house prices and a boost from the Morrison government's tax cuts are likely to help strengthen families' bottom lines and the overall economy, the Reserve Bank believes amid concerns about the long term impact of the US-China trade war.

Bank deputy governor Guy Debelle, in a speech on the major risks facing the domestic economy delivered in Sydney on Thursday morning, said while household consumption had been muted over the past 12 months there were some positive signs ahead.

The Reserve Bank says there are signs house prices are easing. Credit:Glenn Hunt

He said the drop-off in house prices looked to have come to an end in a development that should encourage a lift in household spending.

The government's tax take had sharply increased in recent years but with the recent tax cut for low and middle income earners now working through the economy there should also be a little more money for families.