What’s next for interest rates and how will that affect property? | Property Insiders

[@MichaelYardney]

Watch this week’s Property Insider video chat as Dr Andrew Wilson and I discuss how the RBA backtracked and raised interest rates, conceding that inflation is not falling fast enough and interest rates are still too low. There is no doubt that many Australian families are being hurt by the rising cost of living at the same time their mortgage or their rents have increased substantially, however, our economy is still clearly too strong despite those 12 rate rises since May 2022. You can read more here: propertyupdate.com.au/property-news-headlines-forecasts

[@JB026]

You cant really compare interest rates in the USA or Europe to Australia. Id love to have locked my mortgages in for 30 years. The RBA well knows they cant raise as high as them. On a mortgage of 1mln say 5.5% is 55k per year or a $1000 per week. Rents are well below that. I find it amazing people still cope.

[@_SUBV3RSION_]

If you are borrowing a mil then you're rich and can afford it or you're silly. Inflation is not about strangling mortgage holders anyways it's about reducing the money supply growth by reducing borrowing capacity.

[@MichaelYardney]

You're right - as we say regularly on this channel interest rates have not stifled inflation which is due to multiple factors many of them external

[@JB026]

@@MichaelYardney the thing I am more concerned about is the fact that the debt in the USA is so high, that with the current interest rates, they need to print almost 2 trillion for the interest per year, which leads to a flooding of the market of bonds and spiking of the yield on the 10yr, which more or less defines the interest rates worldwide. America either prints and increases inflation or has increasingly larger debt service, also called a debt doom loop, which is hard to get out of. Fun times ahead.

[@MichaelYardney]

@JB026 Yes "interesting" times ahead - but I'm an optimist and know we will get through it

[@emp731]

​@@MichaelYardneyin denial more like it ..

[@frymangaloremk2959]

The good doctor had some good earlier points on inflation then presented auction clearance rates for Melbourne and Sydney 20% higher than SQM research....

[@MichaelYardney]

Yes SQM always seem to have lower numbers than Andrew, Corelogic, Domain and realestate.com

[@shivaraj6]

@@MichaelYardneybecause Louis isn’t a spruiker!

[@jaytee7642]

The Sydney clearance rate is incorrect was much lower especially if you include property withdrawn due to lack of interest

[@MichaelYardney]

The Sydney clearance rate was measured for properties reported by Saturday night - it always falls as all the results come in, that's why we pay more attention to the trend than the specific figure

[@robguz1007]

Thanks for the update lads 💰💰💰💰

[@MichaelYardney]

Our pleasure!

[@mohammadalimahfuz6978]

Thanks to RBA for increasing interest rate..❤❤ It will help for first home buyer and inflation down for sure.....

[@MichaelYardney]

@mohammadalimahfuz6978 You're right - we live in "interesting" times

[@jeffreyng1259]

RBA cannot raise interest rate anymore as most Australians take home pay is low after tax. If more Australians can’t pay their bills, it may create more crime rates

[@MichaelYardney]

@jeffreyng1259 you're right - rising rates are hurting the wrong people