admin-ajax.php

More economists believe rates will rise in the next year

While none of the economists recently surveyed expect a change to interest rates when the RBA meets next Tuesday, the majority are predicting cash rate will rise within next 12 months.

This may mean it’s time for property investors to start planning ahead

Finder.com.au surveyed 18 leading experts including all four major banks and the majority of respondents (11 out of 18, or 61%) are forecasting the cash rate to rise within the next 12 months.

Of these 11, six experts state the cash rate could start increasing by the end of this year including AMP, Commonwealth Bank, Commsec, HSBC, St George Bank and Urbis.

Michelle Hutchison, Money Expert at finder.com.au, said:

“With average home loan sizes among the highest we’ve ever seen, it’s a real concern that many borrowers will struggle with bigger interest rates.

“If the cash rate reaches average levels of the past decade of about 5 percent and home loan interest rates follow to an average of about 7 percent, that would cost the average home loan of $318,000 an extra $345 per month or over $4,000 in a year.”

 What the survey of leading economists and money experts had to say…

rates1 rates2



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'More economists believe rates will rise in the next year' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!