Will Interest Rates Rise in 2022?
It’s a tumultuous economic time in Australia. Nonetheless, the Reserve Bank of Australia decided to hold the cash rate steady on April 5, 2022. They kept the cash rate at .10% for the 16th month in a row. Although the RBA has not changed the rate, it doesn’t mean that the rest of 2022 could lead to increases. Most Australians have become aware that inflation is performing a number of prices, especially everyday essentials.
The likelihood of interest rates increasing in 2022 rather than coming down is more likely. This poses a conundrum for the public. For example, homebuyers can consider speeding up their timeline to lock in the current rates. They can also wait it out. If you finance your home purchase through Mortgage House, we offer several tools to help homebuyers hedge against a rise. We offer introductory fixed-rate mortgages. We also offer several tools for our variable-rate mortgages. If you link an offset account, you can offset a good portion of your interest rate charges by keeping a consistent and high amount in it.
In addition, once you become a Mortgage House client, you receive access to our products such as our business loan.
Industry insiders continue watching the economic activity and sentiment of the RBA.
Some believe that inflation will lead to an increase in the cash rate and have a trickle effect on interest rates.
Interest Rates and 2022 Conclusion
If interest rates increase in 2022, Mortgage House clients can rest assured that they have several tools at their disposal to help them manage it. Contact our lending specialists to obtain more information.