Fix rates now bank urges

ANZ chief economist Sharon Zollner says this has come as a bit of a surprise and the bank has upgraded its near-term house price forecasts to include a little more momentum.

It has also brought forward the date it expects the Reserve Bank to start raising interest rates by six months to February next year.

“This means mortgage rates are expected to rise a little sooner than before, taking some of the steam out of the housing cycle a bit earlier,” says Zollner.

The report says housing data clearly shows the market is going through an adjustment period following the Government’s policy changes to tax deductibility and the bright-line test.