What will happen to the Perth housing market amid interest rate rises?

What will happen to the Perth housing market amid interest rate rises? 12 August 2022 Matthew Hughes Article by: Matthew Hughes Source: The Property Tribune August 09, 2022 Without a doubt, interest rate hikes have made up its fair share of headlines, over the past few months. Back in May, the Reserve Bank of Australia (RBA) raised the cash rate from a record low of 0.1% to 0.35% . Since then, it has increased to 1.85% . The rate rise came despite RBA Governor Philip Lowe’s adamance that rates would not rise until 2024, a position he has held as recently as last year. The rate hike was driven by the steep rise in inflation, which is at its highest level since the GST was introduced in 2000; of course, all eyes were on the central bank when inflation was revealed to be 5.1%, in April. The steep rate rises have been considered, by many, as extraordinary. November 2020 was the last time cash rate changed at all, and the last time interest rates increased was a decade earlier, in November 2010. Record-low interest rates are just that: record low. They are and should have not been expected to remain as such. Lenders’ rules have tightened towards serviceability, with APRA advising a 3% s

Interest rate rises are front of mind for many property owners in Perth currently, but what impact will they have have on the housing market?

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