Home Loans & Mortgages

Mortgage Rates: RBA may lift rates next month, if not then August As the impact of rising fuel prices and the devastation of the floods hit Australian inflation, major banks are shifting their forecasts for the next official interest rate rise to next month. Inflation will hit interest rates The Reserve Bank of Australia tries [...]

The major banks will have to raise mortgage interest rates, without the Reserve Bank moving rates sooner or later, and the RBA knows this.
The RBA can now sit back and watch the major banks squirm, knowing they’re under pressure to raise rates. This tension will create more uncertainty of a rate rise in November and by then the banks will have to move on mortgage rates even if the RBA sits on its hands. Result? The RBA can leave interest rates as is because the major banks will do its job for them.That is, if cooling the housing marking further is one of its aims.

In that article I have suggested that Interest rates rises concerns for Australian home buyers and homeowners need to be addressed by the RBA and the Government about bank policies in relaxed lending.

There is evidence that any mortgage rate increase will lead to mortgage stress for a lot of homeowners who has overcommitted of mortgage finance, either recently, or by buying at the top of the real estate market.

Some experts are now saying that the Reserve Bank of Australia [RBA] could raise interest rates as early as October. More of them agree that there maybe four interest rates rises over 2011 to ease inflation caused by our mining boom.

The Reserve Bank is ready to pull the trigger on interest rates. Inflation is getting a bit on the high side and unemployment looks like falling even lower, so the RBA will feel compelled to raise rates. However if the CBA and other baks follow suit, then they will have done the RBA’s job, and official rates could remain as they are for now.