Will they or won’t they?
If the reserve bank puts up interest rates in August, I think we could see house prices fall across the board. My gut feel is that many home owners are on the brink. Successive rate rises have seen household budgets stretched to almost breaking point, especially those who have purchased in the last four years. The RBA should ignore inflation figures as they have been fuelled (Pardon the pun) by the flow on from skyrocketing fuel prices. Home owner’s have already felt the pain at the pump and the supermarket, they should not be punished further. Maybe we have to live with a little inflation, after all the world is changing. China is thirsty for fuel and needs to sell manufactured goods to the world for continued growth and world domination of manufacturing.
Of course, one man’s pain could be anothers gain if you are cashed up at the moment and can time your purchase. There will be some bargains to be had. I suggest esplanade/seafront/waterfront addresse’s or very near. Some wealthy folks are about to take a big hit if the RBA tries to strike a blow against inflation.
Take a look at the historical home loan mortgage rates for the last fifty years. See a trend you would like to comment on?
Oh! And if rates do go up, check your statement for any errors. A rate rise is an opportunity for a lender to over charge.