Carrington Clarke

Now, the market betting at the

The Reserve Bank hike interest rates another quarter of a percentage point when it hands down its decision tomorrow.

It becomes a little less certain after that as far as consensus is concerned.

Markets seem to be betting on at least one more tomorrow and then another one.

But we do have, for example, the NAB suggesting it's going to be one and done, the bank that released its results today.

Westpac, on the other hand, it's suggesting we'll see three more to come.

year, which would be quite an extraordinary rise in this calendar year.

This is almost like the technical restriction and the reason why we might see

downward pressure on prices because people go to their broker, to the bank and say, how much can I get to buy a house?

Taking into account things like stamp duty or whatever fees you have to pay.

And then that might be the amount, particularly in a hot market, that they bid.

They're trying to get the most expensive property that they can or hitting their borrowing capacity.

again, probably get independent financial advice about whether or not it's the best thing to be doing.

But that has come down, that amount has come down, if we get a rate hike tomorrow, by that amount, which obviously, that's almost a technical impact.

Obviously, on top of that, you've got people making their own decision about, well, how much

do I want to be repaying each month?

And I'm looking at the interest rate I'll actually be paying and like, is that getting too expensive for me?

And then you have the kind of psychological impact of everything that's going around the world, including you've got this oil price shock, you're paying more when you go into the grocery store, you're already feeling a bit stretched.

And then you're also hearing these predictions that there's going to be even further interest rate hikes in the future.

How big a mortgage do you actually want to take on?