Economists warn that further Reserve Bank of Australia interest rate hikes beyond the expected fourth increase this year could worsen financial strain on homeowners, pushing mortgage costs higher while failing to significantly ease housing affordability. A potential fifth or even sixth rise would compound pressure on borrowers, with experts describing the impact as severe for the property market. The central bank is set to announce another cash rate adjustment, which would further increase monthly mortgage repayments for typical home loans. Analysts suggest that even if borrowing costs rise, housing prices may remain out of reach for many due to broader economic factors.
With RBA predicted to lift cash rate for fourth time this year on Tuesday, experts warn a fifth – or even sixth – rise would be ‘overkill’Get our new political email, free app or daily news podcastTwo or even three more Reserve Bank interest rate hikes would be “devastating” for the property market but still leave housing more unaffordable than ever as higher borrowing costs trump lower prices, experts say.The RBA’s monetary policy board is widely expected on Tuesday afternoon to announce an increase in its cash rate to 4.6%, from 4.35%, in a decision that will add another $100 to the monthly mortgage interest bill on a $700,000 loan.Sign up for Guardian Australia’s Politics, really newsletter here Continue reading...
