This follows 10 consecutive monthly rises and a brief reprieve in April, which turned out to be all too brief.
What will it do the property market? Well from what we can see, economics are using words like “soften” and “slow” but it’s not likely to stop the recovery that we appear to be seeing as price drops have turned a corner.
AMP Capital chief economist Shane Oliver told realestate.com.au that in a best case scenario the rate rise would be a “speed bump” in the property market recovery.
Meanwhile what does it mean for your hip pocket?
Based on the national average mortgage size of $585,557, the rate rise will cost borrowers an extra $92 per month. In Brisbane our average mortgage size tends to be a little less than the national average, but it’s still around half a million dollars.
So, if you’re planning on buying, you’d be wise to factor in a good buffer to give you wriggle room against any further rate hikes.
For current mortgage holders – the belt tightening continues. An article in the Australian Financial Review noted that most Aussies are still managing to service their loans by cutting back on recreational spending while others were thinking of taking on extra work. But for the most part, we are weathering the storm.
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