Australians interested in buying real estate should ignore media speculation about interest rates and get on with business.
Journalists apparently believe we’re all obsessed with interest rates and therefore are feeding us speculation about what will happen every single day – in contradiction to the repeated assertions by the Reserve Bank that it does not intend to change the official rate this year and probably not until 2024.
Keep in mind that most of this idle speculation is sourced from economists whose track record in forecasting events is quite dreadful.
The next step in the pointless speculation indulged by media is that an interest rate rise will cause property prices to fall. This is an even bigger furphy, as there’s never been an occasion in Australian history where an interest rate rise has stopped a property boom, much less caused prices to fall. History shows that it takes 5 or 6 rate rises in rapid succession to take the wind out of a major property boom.
Ignore this white noise from the media. It’s created by non-experts whose motivation is to create click-bait headlines – NOT to inform Australian consumers.
