Rate rise could wipe 15 per cent from home prices: RBA

A 2 percentage point lift in interest rates could knock 15 per cent off the value of Australian homes, the Reserve Bank has warned while telling people who have taken out huge mortgages over recent years to start bracing for an increase in their repayments.

Economists at the nation’s leading banks expect the RBA to start lifting interests from a record low 0.1 per cent at its June 7 meeting and follow that up with at least three more increases by year’s end. They all think the cash rate will be 2 per cent or higher by December 2023. A full percentage point lift in mortgage rates would add almost $500 a month to the repayments on a $600,000 loan. Taking the cash rate to 3 per cent or more would increase repayments by $1500 a month or $18,000 annually.Campaigning in Victoria, Mr Morrison said there was “no doubt” pressures on the economy had increased but the Coalition was the only party able to handle them.

Mr Albanese, campaigning in South Australia, said the threat of higher interest rates emphasised the need to deliver policies that permanently reduced cost-of-living pressures.“We are being modest at this election, we are not promising to change the world. We are being “Increases in interest rates – which are anticipated by market participants over the next couple of years – would result in higher debt repayments for many households and businesses, but most are well-placed to absorb these,” it said.

Another fifth would face a lift of no more than 20 per cent while a quarter would have to deal with a 30 per cent increase in their monthly repayments.

swrighteconomy great bring it on

swrighteconomy Well these prices cannot continue to increase?!

swrighteconomy Here's hoping

swrighteconomy So if you bought a house in Sydney more than 3 years ago, you’ve still made, what, 50%? 60%? on your investment?

swrighteconomy The RBA forecasting isn’t there greatest achievement.

swrighteconomy House prices are not part of the RBA’s charter ... they will be wrong

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rate rises could cut 15 per cent from house prices: RBAHouse prices could fall 15 per cent if interest rates rise 2 percentage points, in line with market expectations, the Reserve Bank has warned. you say that like it’s bad thing :) That would be bad for people who end up in negative equity. But as a home owner, I'd be thrilled if fewer investors and more regular people could buy I'm my suburb.
Source: FinancialReview - 🏆 2. / 90 Read more »

Rate rise could wipe 15 per cent from home prices: RBAA 2 percentage point lift in interest rates could knock 15 per cent off the value of Australian homes, the Reserve Bank has warned swrighteconomy | ausecon rates property swrighteconomy Oh no, the prices will lose a year of accumulated value. What ever will we do?
Source: theage - 🏆 8. / 77 Read more »

Foreign investment in Australian homes falls to 15-year lowForeign investment in Australian residential real estate fell to its lowest level in more than 15 years, with approvals for purchases by foregin nationals falling to a paltry 4384 properties in the 12 months to June last year Lucy_Macken | property F... Lucy_Macken You can kiss the Chinese Market goodbye if assets can now be seized willy nilly like happened to the Russians. Noone who is on our future hit list will ever trust us with assets again.. Lucy_Macken Can we make 0%. Why are foreigners allowed to buy our properties. Stop it. Lucy_Macken About time .
Source: theage - 🏆 8. / 77 Read more »