RBA Cash Rate Continues to Climb. What Can Homeowners Do? – November Rate Report

After the Reserve Bank of Australia raised the cash rate to a 15-year high in September, it raised it again at today’s Monetary Policy Meeting, bringing the cash rate to 4.85%^[1].

With Australians already struggling with groceries^[2] and fuel, and the holiday season around the corner, another rate rise will no doubt add to homeowner anxiety.

What’s Causing Higher Rates?

Inflation, fuel costs and international uncertainty were key factors behind the RBA’s last cash rate increase. Inflation was far higher than expected, while fuel prices came in 13% higher than what was projected for August. In short, the RBA doesn’t see the economy slowing down enough to justify holding the cash rate.

“Domestic spending and investment have been stronger than expected, despite weak sentiment and the softening in housing market conditions.” RBA Governor Michele Bullock said.

Last week’s inflation report saw CPI rise even further, to 4.3%, making today’s cash rate decision a near certainty ^[3].

Unfortunately, many homeowners can’t wait for rates to come down; Mortgage repayments now account for between 15-30% of a household’s take-home pay, and that number will only be tighter with today’s rate increase.^[4]

High fuel prices, more expensive groceries, and higher energy prices are also costing Australians, while driving inflation and consumer spending upwards.

What Can Home Owners Do?

An increase in interest rates is far from what homeowners want. And with so many rapid increases in interest rates this year, it’s understandable if you’re feeling frustrated; you’re not alone.

There are still options available to help guide you through the process.

MoneyQuest brokers can help you review your financial situation and find out if more competitive loans are available to you. They can also help you restructure your loan, so you pay less in monthly repayments in the short term, usually by extending your loan term.

If you’re feeling the pressure, just talking to a broker can help you open up your options and reduce mortgage stress. If you haven’t already, reach out; let’s see how we can help.

What Can Home Buyers Do?

Young people aren’t buying homes, at least not at the volume they were. With 19.2% less home loans being written in September year on year, fewer young people are entering the market.^[6] High interest rates, alongside stricter borrowing power and serviceability is lessening the appetite of young borrowers.

However, it may actually be more affordable for some people to buy than rent. The RBA found that households with a mortgage are actually financially stronger than renters on average, due to being less impacted by inflation.^[4]

With property prices on the decline nationally, we may be seeing a buyer’s market emerging, with less competition. If you’re looking to buy, you may be closer than you think. Reach out to find out more.

Will Interest Rates Continue to Climb?

We’re with you on wanting to see rates come down, and while there’s no certainty of whether they’ll increase, decrease, or stay on hold, early signs point to further increases.

The RBA has forecasted that inflation will reach its preferred midpoint by late 2027^[3]. Only when inflation hits that point is the RBA likely to consider bringing rates down.

This is a challenging time, and it can feel like things are only getting tougher. But they don’t need to be. If you’re struggling with meeting mortgage repayments, unsure if you can buy, or are just feeling anxious about making ends meet, reach out to us.

A chat with a MoneyQuest mortgage broker and finance specialist can help you explore your options, manage your loan, and regain financial confidence. Most importantly, it costs nothing and could have a significant impact on your situation. Don’t delay; reach out to us today.

[1]Reserve Bank of Australia (2025). Cash rate target overview. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/cash-rate-target-overview.html [Accessed 3 Nov. 2026].

[2]Abi, J. (2026). As budgets tighten, new data shows where millions of shoppers are choosing to spend. [online] Nine.com.au. Available at: https://www.nine.com.au/lifestyle/money/costco-aldi-ikea-profit-surge-cost-of-living-20261012-p614nc.html [Accessed 26 Oct. 2026].

­­[3] Australian Bureau of Statistics (2025). Consumer price index, Australia. [online] Australian Bureau of Statistics. Available at: https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release [Accessed 2 Nov. 2026].

[4] Reserve Bank of Australia (2026). 29 September 2026 | minutes of the Monetary Policy Board meeting. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/monetary-policy/rba-board-minutes/2026/2026-09-29.html [Accessed 26 Oct. 2026].

[5] Bower, M. (2026). Home loan repayments in Australia are stressing household budgets the most in 30 years. [online] Australian Financial Review. Available at: https://www.afr.com/policy/economy/how-much-households-are-spending-on-their-mortgage-by-state-20261013-p6154h [Accessed 26 Oct. 2026].

[6] SBS News. (2026). House prices are falling. So why are first-home buyers disappearing? [online] Available at: https://www.sbs.com.au/news/article/house-prices-falling-first-home-buyers-disappearing/8af7ec8lt [Accessed 26 Oct. 2026].

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