Many consumers expect rate rise this year

Consumer pessimism has risen, with most Australians expecting a mortgage rate rise during the year. (AAP)

Two-thirds of Australians now expect an increase in their mortgage rate over the next 12 months, with one-in-four believing rates could increase by more than one percentage point.

This was a key finding in the latest Westpac-Melbourne Institute consumer sentiment survey, which showed confidence fell by 1.3 per cent to 100.8 in February, with optimists keeping only just ahead of pessimists.