Housing Loan Interest Moves Independent of RBA Despite Holding Pattern
The Reserve Bank of Australia (RBA) has left rates on hold for August 2018 at 1.5% yet again. In fact, it’s been almost 2-years since the RBA have moved on the official cash rate. Though, economists predict that rate hikes may occur in the closing months of 2019, providing that inflation warrants the move. So, the question on many people’s lips is, “How will home values handle a rate rise?”
Australian home values have continued to fall since September 2017, according to CoreLogic Data, with property now 1.3% lower than their peak. Although, these declines are small when compared to the spike in home values during peak times. Even with the decline in home prices, the Australian housing market is still 32.4% higher in value than 5-years-ago.
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