Interest rates could fall by the end of the year, major lender predicts
There’s good news on the horizon for stretched mortgage holders ahead of April RBA meeting
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Mortgage payments could ease as soon as the end of 2023, according to predictions by Australia’s largest mortgage holder.
Economists at the Commonwealth Bank expect rates to peak at 3.85 percent (0.25 percent above current levels) in May before easing off towards the end of the year. This comes ahead of tomorrow’s meeting of the Reserve Bank of Australia board, which is widely tipped to keep rates on hold for the first time in 10 months.
While the other three major banks – Westpac, ANZ and NAB – are all suggesting rates will not begin to fall until 2024, the CBA and NAB have made the most accurate predictions over the past six months.
Westpac predicts interest rates will peak at 3.85 percent in May, while NAB and ANZ expect two more possible rate rises in May and June, bringing interest rates to a peak of 4.1 percent.
The RBA has been using rises in the cash rate to drive down inflation, which has fallen from a peak of 8.4 percent in December 2022 to 6.8 percent in February, further strengthening the possibility of a pause.
Property data provider CoreLogic has just released its Home Value Index, revealing national home values increased by 0.6 percent in March, the first month-on-month rise since April 2022. Research director at CoreLogic, Tim Lawless, said low stock levels, tight rental conditions and greater demand from overseas migration were the most likely causes.
“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” Mr Lawless said.
“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost -20 percent below the previous five-year average. Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly -7 percent below the previous five-year average through the March quarter.
“With rental markets this tight, it’s likely we are seeing some spillover from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan. Similarly, with net overseas migration at record levels and rising, there is a chance more permanent or long-term migrants who can afford to, will skip the rental phase and fast track a home purchase simply because they can’t find rental accommodation.”
As interest rates, inflation and market sentiment fluctuate, investors are being urged to focus on data, not panic.
Sydney Children’s Hospitals Foundation CEO Kristina Keneally says Australia’s culture of large-scale philanthropy is becoming more sophisticated as Gold Dinner raises $75.5 million for children’s health, research and innovation.
Château d’Ansembourg and the adjacent Domaine du Presbytère d’Ansembourg are on the market for €37.5 Million
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The listing comprises the ancient Château d’Ansembourg and the adjacent Domaine du Presbytère d’Ansembourg, which are within central Luxembourg’s Valley of the Seven Castles.
Château d’Ansembourg is one of the seven castles the valley is named for and is regarded as one of the country’s most important privately owned châteaus, according to Ignace Meuwissen, the founder of Whisper Auctions, who is handling the sale.
The castle sits at the heart of an almost 500-acre estate overlooking the picturesque village of Ansembourg, and records of its existence date to 1135.
Domaine du Presbytère d’Ansembourg, meanwhile, is a more than 110-acre estate comprising a former presbytery, a chapel dating to 1678, a historic school site, forests and meadows.
“Properties of this calibre rarely become available,” Meuwissen said.
“What is being offered today is far more than a chateau. The combination of nearly nine centuries of documented history, 245 hectares of land and a unique location in the Valley of the Seven Castles creates an opportunity that is exceptionally rare within Europe. Opportunities of this scale and heritage value are seldom brought to market and are often preserved within families for generations.”
The properties are being marketed through a “semi-off-market sales process,” with limited information and marketing materials publicly available, and access to the properties is reserved for a small number of pre-qualified candidates, according to Meuwissen.
Both estates have been privately occupied by the same owner, whom Meuwissen declined to identify. Mansion Global could not confirm who the seller is.
As housing drives wealth and policy debate, the real risk is an economy hooked on growth without productivity to sustain it.
A Vaucluse masterpiece by MHNDU with interiors by Poco Designs brings architectural ambition and breathtaking ocean outlook to the auction block.
