How Often Does the RBA Change Interest Rates? Will Rates Rise in 2022?
The lockdown and pandemic sent the Australian economy, housing prices, and interest rates into a frenzy. The Reserve Bank of Australia oversees interest rates and movement in the economy. They maintain the cash rate too.
As 2022 rolls in, homebuyers and homeowners want to know if interest rates will rise in the new year. In November 2021, the RBA stated that an increase in interest rates was not in the books for 2022. However, other reports state that an increase will occur in the second half of 2022. Then, a drop will occur in 2023.
Nonetheless, homebuyers used the last half of 2021 to lock in their interest rates. They use it as a hedge in case the rates do increase. In addition, the Australian economy is experiencing inflation. Real estate remains a great hedge against inflation.
Another report released in December 2021 stated that the RBA is willing to practice patience in 2022. If they make a move to raise them, it will occur in November 2022.
If interest rates do increase, it makes borrowing more expensive. However, Mortgage House and our lending team can still find favorable loan terms for most applicants including home loan interest rates.
Reserve Bank of Australia and Interest Rates 2022 Conclusion
At the moment, the Reserve Bank of Australia doesn’t anticipate raising interest rates at the beginning of 2022. When interest rates do increase, Mortgage House clients can rest assured that our lending team works to find the best loan terms. It’s possible to receive favorable rates. Contact our loan specialist team.