Tuesday’s interest rate rise means homeowners are now going to have to deal with something they have not had to deal with for more than 11 years. Not only that, but there is also the prospect of mortgage repayments never again being as low as they are now. It means housing affordability is going to become much worse.
After a record 137 months without a rate rise, to be honest, in the end I thought the RBA’s reasons for raising the rate were rather feeble, given wages growth remains well below inflation. Philip Lowe’s statement read more like one searching for justifications rather than an explanation.
