Economy

Inflation figures have all but destroyed any hope of an interest rate cut for millions of Australians in mortgage stress, but the worst may be yet to come, writes REB editor Liam Garman.

Stress among mortgage holders has fallen to its lowest level in more than two years following the August rate cut.

Victoria has emerged as the fastest-growing investor segment, with double-digit loan growth.

Newly released minutes from the RBA’s November cash rate decision show that there is limited scope for rate cuts over the next year.

A higher-than-expected unemployment rate has led markets to alter their forecasts for the next interest rate cut.

As first home buyers tap into the expanded 5 per cent deposit scheme, the RBA governor noted that future house price increases will depend on supply and demand.

The major bank has pushed its rate forecast to 2026 following the latest inflation data, joining the other banks in a pessimistic outlook for 2025 interest rates.

The Reserve Bank has held the cash rate steady at 3.60 per cent following the sixth monetary policy meeting of the year. The industry has since reacted to the news.

The central bank has handed down the latest cash rate target at its sixth monetary policy meeting of the year.

A major shift in sentiment is sweeping the commercial lending sector, with broker confidence in asset finance doubling year on year as economic concerns ease.