When will mortgage rates rise and by how much?

Discussion in 'Property Market Economics' started by Blueskies, 4th Mar, 2021.

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  1. Beano

    Beano Well-Known Member

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    Oh for the days of the 14% to 18% net yields :cool:
     
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  2. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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  3. Property Baron

    Property Baron Well-Known Member

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    All these people paying crazy money right now, well hope they planned for it
     
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  4. Sackie

    Sackie Well-Known Member

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    It's really not 'crazy' money. It's largely catch up. Might appear to be crazy due to the intensity of it. But it's stable and expected growth imho.
     
  5. Property Baron

    Property Baron Well-Known Member

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    You are right.
    I was more going along the lines of when interest rates rise and what that could mean for some. Paying an extra 300k now due to fomo could really hurt in a few years if interest doubles.
    What's your crystal ball tell us how high could they get in 5 years time? Or maybe they stay low?
     
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  6. Sackie

    Sackie Well-Known Member

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    I think many of those who are currently buying are buying with lower levels of debt and a decent amount of deposit in the property. Also APRA has made things tight enough that most loans should be able to withstand some vulnerability to changing factors. So that will take some of the sting off when IRs increase in the future. Also most of the buying is done by OOers who will beg, borrow and steal to avoid selling.

    I think current prices (generally speaking) won't see too much detrimental pain in the future. No crystal ball though and almost anything can happen. But I believe it's more probable that current prices will be able to withstand some volatility in the medium term.
     
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  7. Never giveup

    Never giveup Well-Known Member

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  8. sash

    sash Well-Known Member

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    OK...lets go there in bank speak is to make the customer sticky....they offer these rates when rates are rising...knowing full well that when rates normalize probably around the 1.5-2% mark...it might be harder for the customer to refinance.

    Read the post from the start some people believed that the RBA would not increase till at least 2024....well they are...

    The reckon the speed they will raise rates may astound some people. ... watch and see...
     
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  9. aving1001

    aving1001 Well-Known Member

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    Next meeting seems to be at 7th June. May be time to brace for impact. I was looking to upgrade my home but now I will wait around a bit.
     
  10. sash

    sash Well-Known Member

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    Warp speed.... for 40 basis points .....
     
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  11. SouthieMonk

    SouthieMonk Well-Known Member

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    just curious to know your opinion now. what do you think will happen now? you said a mere 50 bp increase will cause dramatic slowdown, by Jun 7th we will see more than that.
     
  12. dabbler

    dabbler Well-Known Member

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    Get used to the rises.....short of some other world pandemic crisis causing the printing to start again, it is now payback time !
     
  13. spludgey

    spludgey Well-Known Member

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    And I would argue we're seeing a dramatic slowdown and even retractions in different markets.
    I still think that it's very unlikely that we get more than a 2% rise in the next couple of years. But as I said last year, I'm not exactly an expert.