Despite most economists predicting the Reserve Bank board will leave rates on hold at today's board meeting, many Australians expect mortgage rates will rise this year, and are considering switching to fixed rate loans.
The Reserve Bank of Australia left the official cash rate at 1.50 per cent but credit conditions have tightened for investors over recent months, and owner occupiers are wary about rates as the banks move unilaterally, says Shane Garrett of the HIA.
Just as consumer advocate group Choice showed Australian renters lack adequate security of tenure and face poor-quality amenities, data from the RBA shows renters are forced to move more often than home owners.
OECD says Australia must lift interest rates to cool housing market
Australians may face higher interest rates next year, as the The Organisation for Economic Cooperation and Development warns of the need to "unwind tensions" in the housing market.
The Reseve Bank's decision to cut rates to historic lows has been met with broad approval by the property sector, but low stock levels in some markets could cause prices to continue rising strongly.
