The Real Estate Institute of Australia (REIA) President, Mr Hayden Groves has urged the RBA to exercise caution going into 2023 as the cash rate rose another 0.25 basis points today to 3.10%.
Mr Groves said that the RBA is providing mixed signals to Australian homeowners and aspiring homeowners.
“The RBA is expecting to further increase interest rates but is also saying that the lag effect has not yet kicked in. So they are aggressively pursuing rate rises knowing the impact from previous rate rises is yet to happen.
“The RBA should have waited to see the impact of the past increases before the next Board meeting – it takes time for the past increases to impact on demand and prices.
“The rise in interest rates on a $750,000 mortgage has added more than $1,400 in monthly mortgage repayments further adding to the decline in housing affordability.”
