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The Reserve Bank has warned that more interest rate hikes are imminent, with the impacts being felt across the board, from family budgets to the property market and Australia’s economy as a whole.
Mark Bouris joined the Today Show on Channel Nine to provide some clear guidance as to what the rise in interest rates means to everyday Australians.
“I think that was a shock to the marketplace,” said Bouris, regarding the Reserve Bank of Australia’s 0.50% increase to the official cash rate. “The 0.5% increase is probably 20% more than all the economists that I spoke to and who did the research on this, expected.”
Mark said this significant increase by the RBA is a “real signal” of what the RBA is attempting to do and whilst it might bite Australians in the back pocket, Mark’s advice is simple: “Wait. Don’t panic.”
“The bottom line is this: the predictions which we’ve all been seeing around what interest rate rises we are going to see, have come true. The other prediction that has been hitting the market is that house prices, on average, will reduce from somewhere between 10 and 15%. So that means if you’re worried about higher repayments every month as a new borrower, then it may be a possibility you’re going to buy at a much better price in the next six months. So just wait, don’t panic.”
Tune in to Mark’s appearance on Channel Nine by clicking the video above.
If you’re worried about your current home loan and your repayments increasing, there may be a better deal out there for you and refinancing might be an option for you to fight against rising interest rates. Our experienced YBR Home Loans mortgage brokers know exactly the right questions to ask you and how to shop around for the best deal out there. Engaging our brokers to help you during these uncertain times costs you nothing! So reach out to us today to start a conversation on your next steps.