Last week RP Data discussed whether the recent interest rate rises would have a dampening effect on the RP Data-Rismark Home Value Indices for October, clearly not. The results showed that nationally home values climbed by 1.4% and have now risen an average of 1% a month during 2009. These results, along with a plethora of other positive economic results in recent weeks and months swayed the Reserve Bank Board to lift the cash rate for an unheralded third successive month following their meeting. We still don’t know exactly what impact this will have on interest rates with Westpac raising theirs by 45 basis points and ANZ, CBA and NAB to date remaining tight lipped on their decision. No doubt they will be weighing up their options but given the backlash over Westpac’s decision to almost double the increase the other banks will be carefully mulling over what they should do.
The above is an article from RP Data’s Property Pulse published 4th December 2009.