Manage My Mortgage

Usually the banks borrow money from the RBA, which is how the central bank controls interest rates. But the deposits they hold at the RBA have blown out since the pandemic and they've been earning interest from them. Double dipping on the interest rate rise on the deposits with the RBA and loans to borrowers.

Rate hikes are costing us money in more ways than you think Trusted and independent source of local, national and world news. In-depth analysis, business, sport, weather and more.

March Quarterly CPI released yesterday at 7.0% pa and 1.4% for the quarter (smallest quarterly increase since late 2021). Monthly CPI indicator rose 6.3% in the twelve months to March (slightly different basket to the quarterly CPI measure). 10% of economists are predicting a further 0.25% interest rate rise when the RBA meets next Tuesday. Source ABS/Chart ABC News

A basket full of stats from the RBA...thinking of incorporating some stats in your next business presentation, the RBA has a useful graphing tool where you can select your own stats and time period at https://www.rba.gov.au/education/resources/digital-interactives/snapshot-comparison/

Rate hikes pushed housing lending down considerably from its COVID peak but barely impacted building approvals through most of 2022. But approvals fell 9.0% m/m in Nov and are at their lowest level since Jan ’22 – perhaps rate hikes are finally having an effect. ANZ Research

As property prices have increased over the past decade, a growing share of the wealth in Australia is being held by older Australians.

QBE Australian Housing Outlook 2022-2025 has Melbourne median house price forecast to decline by 14% by late 2023 from the December 2021 peak. The decline should turnaround in late 2023 once the RBA cash rate increases end and possible RBA cash rate decreases start.

Economists predicted a year ago that house prices would keep rising in 2022 after house prices rose 22% in 2021 – but missed that house prices would suffer their biggest fall in 2022 since the GFC. Below is what their crystal balls forecast for 2023.

Over the past decade returns on both shares and homes have grown by 9.1% per annum Source: Commsec / CoreLogic

Decline in calendar year 2022 was the biggest in 42 years driven by the monthly RBA cash rate increases, which went from 2.4% pa in April 2022 to 5.3% pa today. Since the first hike in May 2022, the RBA has lifted its target cash rate by 300 basis points. Source: CoreLogic / Christopher Joye

2022 saw capital city home values slump by their largest margin since CoreLogic started tracking the 5 biggest capital city property values in 1980. On a peak-to-trough basis, the 5 capital city index lost 8.8% in 2022 and in calendar year terms, it fell 7.1%. Source: CoreLogic / Christopher Joye

What is the solution to housing affordability?
- Excellent report on the housing market from Alan Kohler on the ABC which covers the proposed housing policies of both political parties

What is the solution to housing affordability? Housing affordability has taken centre stage in the last week of the election. The latest major announcement from the Coalition, just six days before voters head to the poll, would see first home buyers raid their super to help them with their deposit.