What the RBA rate hike means for property interestrates
Property prices are tipped to fall further as buyers “wait and see” how high interest rates go following the Reserve Bank’s fourth consecutive rate hike since May.
Market watchers say this rapid increase in interest rates could see fewer buyers in the market, which could lead to a further drop in values.PropTrack Senior Economist Eleanor Creagh said Sydney and Melbourne were leading the way when it came to falling property prices. National values dropped 1.6 per cent since the peak in March, while prices in Sydney and Melbourne fell more than 3 per cent.Ms Creagh said while increased mortgage costs would tighten the borrowing capacity of buyers, those who were in a position to buy could find themselves in a more favourable market.
“This is not only pushing prices down but seems to be causing some would-be buyers to hold off completely for the moment.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RBA raises rates to 1.85pc, lowers growth outlookThe RBA is forecasting higher inflation and weaker economic growth this financial year and the next, and warned the current 48-year low 3.5 per cent unemployment rate would rise as a result.
Read more »
RBA interest rates: Reserve Bank lifts official cash rate by 50 basis points to 1.85%Decision is the fourth monthly rise in a row, as Australia’s inflation rate soars beyond target range of 2-3%
Read more »
Live: RBA expected to increase rates for fourth consecutive month to curb rising inflationThe Reserve Bank is tipped to raise the cash rate for the fourth time in as many months to curb inflation. Our experts answer what it means for you. Follow live.
Read more »
The RBA weapon that will help push rates up furtherWhile there is a lot of focus on what the RBA and other central banks are doing with interest rates, in the background is another process that will also tighten financial conditions and help push rates even higher.
Read more »
ASX to open higher ahead of another RBA rate riseFinancial markets and economists are convinced the RBA will deliver another 0.5 percentage point increase, bringing the cash rate to 1.85 per cent from 1.35 per cent at Tuesday’s policy meeting.
Read more »