What impact do interest rates have on house prices?

Nov 1, 2026, 10:30 PM4 min

Home values across Australia are dropping at their fastest pace in decades. While that's happening, people are paying more interest on their home loans because the Reserve Bank keeps pushing up the cash rate to deal with high inflation. If home values continue going south, as they're expected to do, at what point does the Reserve Bank decide to reverse course on interest rates?

Home values across Australia are dropping at their fastest pace in decades.  
While that's happening, people are paying more interest on their home loans because the Reserve Bank keeps pushing up the cash rate to deal with high inflation.
If home values continue going south, as they're expected to do, at what point does the Reserve Bank decide to reverse course on interest rates? 

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