Mortgage rates are expected to keep rising
Financial markets predict the Reserve Bank will lift the official cash rate off the record low 1.5 per cent level late in 2018, which would have a measurable impact on household mortgage payments. But even if that doesn’t happen, borrowers should prepare themselves for higher mortgage rates.
Whether the Reserve Bank does find a way to raise interest rates in 2018 or not, one thing is clear – mortgage rates are unlikely to decrease in the near future.
Property prices will continue to cool
Sydney property prices have begun to slip after several years of double-digit percentage price gains – experts predict these trends will continue in 2018.
Weaker auction results point toward further slowing as we move into 2018. Importantly, there is still nothing to suggest to us that prices are going to enter widespread declines.
First-home buyers will make a comeback
With investors taking a step back, first-home buyers will find more opportunities in 2018. The deposit burden for first-home buyers continues to rise, and more people require assistance getting the deposit together.
But once they are in the market, low interest rates mean that repayments are affordable, and the interest bill has been falling.