The Reserve Bank of Australia has ended the year on a positive note with interest rates remaining steady at the record low of 1.50 per cent.
REINSW President John Cunningham said speculation is mounting that interest rates will rise in the new year.
“There are strong signs that interest rates will go up in 2017 after a downward trend for more than five years,” Mr Cunningham said.
“We saw two interest rate cuts in 2016, in August and May. The reality is that record interest rates will not last forever. Recent rises in fixed interest rates are a strong indicator that the trend is set to be broken.
We warn those planning to enter the property market with a mortgage to factor in the possibility of future interest rate rises,” Mr Cunningham said.
The RBA will next meet on Tuesday, 7 February 2017.
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