Watch Loan Market Group's executive chairman, Sam White on YIP TV /video-guides/ as he discusses his predictions for the state of the mortgage and property markets in 2010 and his views on the latest rate hike by the Reserve Bank of Australia.
White said the RBA are using these smaller rate rises as a preventative measure to avoid having to make larger increases later on. However, he said there is no doubt that the most recent rises will have an immediate effect on consumer confidence and spending.
"The latest rise will add $50 more to the average mortgage repayments per month," he says. "When you put this $50 on top of the $100 extra a month that mortgage holders are now paying as a consequence of the previous two rate rise, going into Christmas many Australians are going to have to tighten their belts just that much more to accommodate yet another interest rate rise."
