Rising interest rates erase benefit of falling house prices

Summarised from 2 outlets · Updated 2 Oct, 12:55 · Archive

Rising interest rates have negated the benefit of falling house prices for homebuyers.

Rising interest rates have eliminated the advantage that falling house prices might have offered to prospective homebuyers. The Reserve Bank of Australia's decision to lift the cash rate has negated any savings from lower property values, leaving a key group facing increased borrowing costs despite the decline in prices.

The combination of higher rates and lower prices creates a difficult situation for those looking to purchase property, as the improved affordability from price falls is outweighed by the impact of increased interest rates on mortgage payments.

How it is being reported

• Rising interest rates wipe out house price falls as RBA lifts cash rateThe West Australian · 30 Sept, 15:07
• Rising interest rates wipe out house price falls as RBA lifts cash ratePerth Now · 30 Sept, 15:05

In this story: Reserve Bank of Australia · Australia

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