August 2022 RBA Update: Is the glass half full or half empty?
- Interest rates jump by another 0.5%
- Inflation soars beyond 6% but house prices are falling
- See what your home loan repayments could be, can you get a better deal?
- Beware of rising repayments – missing a payment may impact your credit score
Up, up and away
The Reserve Bank of Australia (RBA) has met expectations by increasing interest rates by another 0.5%.
August marks the fourth month in a row of rate rises which leaves the official Cash Rate at 1.85%, compared to 0.1% in April 2022. These have all occurred in quick succession.
Highest inflation rate since 2001 but house prices falling
Australian prices increased at an annual rate of 6.1% to the end of the June quarter. This is the fastest rate of inflation recorded in over 20 years.
On the contrary, the rising interest rate environment has seen house prices fall by 2% across Australia in the past three months with some economists expecting this to accelerate as rates continue to head north.
Impacts to your credit score
Rising interest rates won’t impact your credit score unless you start missing your repayments. If you are looking to refinance or simply want to see how banks view your credit file, log in to see how your credit score is tracking.
If the interest rate hike is passed on by your bank in full, mortgage holders could expect to pay an extra c. $130 per month on a mortgage of $500,000. You can use our repayment calculators to determine what the rate rise means for you.
The banks are still fighting for home loans. If you are on the hunt, there are still competitive mortgage rates available which you can see with our latest offers.