Experts warn of potential impact of further interest rate hikes on property market
The Guardian · September 28, 2026Original source ↗
What happened
The Reserve Bank of Australia is expected to increase the cash rate to 4.6%, affecting mortgage costs for borrowers. Experts indicate that additional interest rate hikes could negatively impact the property market while still leaving housing unaffordable.
Why it matters
The decisions made by the Reserve Bank regarding interest rates can significantly influence housing affordability and the broader economy.
How this story affects people
How does this story affect you if you are a homeowner with a mortgage?
Your monthly mortgage payments will increase by approximately $100 on a $700,000 loan, making it more challenging to manage your finances. This increase in costs could strain your budget further, especially if additional rate hikes occur.
How does this story affect you if you are considering buying a home?
Higher interest rates will make borrowing more expensive, potentially putting homeownership out of reach for many. Even if property prices decrease, the increased cost of borrowing may outweigh any savings from lower prices.
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