Login
ISCOVER
Murmurs of a rate rise are emerging among experts for the first time since November 2010, according to a mortgage comparison website.
Although experts correctly predicted that the Reserve Bank would leave the official cash rate at 1.5 per cent on Tuesday, seven (26 per cent) of the 35 experts and economists surveyed by finder.com.au expect a rate rise next year.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Five of the seven economists expect the rise to take place in the second half of 2017. Mortgage Choice’s Jessica Darnbrough and the University of Queensland School of Economics’ Clement Allan Tisdell predicted a a rate increase as early as March 2017.
“We haven’t seen much talk of rate rises in over six years, but as 2016 draws to a close we’re starting to see a significant number of predictions that the next RBA rate movement may be in a positive direction,” Finder.com.au insights manager Graham Cooke said.
“We’ve already seen some lenders lift rates independently of the Reserve Bank, including Westpac and Bank of Sydney, and it’s likely this will be a theme in the new year, so mortgage holders may want to consider locking in a competitive rate before the tide starts to turn.”
When asked about the recent introduction of regulations to curb foreign investment in the local housing market, 42 per cent (11) of the experts said they believed the regulations could drive Australian property prices down by up to 10 per cent.
However, 58 per cent (15) believed the regulations would have no impact on the property market.
“Any reduction in foreign investment in capital cities could put downward pressure on house prices. However, with the Australian economy looking relatively healthy on other metrics, the effect is likely to be minimal,” Mr Cooke said.
[Related: Latest round of rate hikes ‘a sign of what's to come’]
JOIN THE DISCUSSION