Experts are predicting a long-awaited break for home owners when the Reserve Bank board meets next week.
The board will have its June meeting next Tuesday and Wednesday, and according to Finder’s latest survey, most finance experts and economists are predicting the cash rate will hold steady after three consecutive hikes.
The RBA board will hold the cash rate at next week’s meeting, most experts predict. Getty
But the pain for mortgage-holders isn’t necessarily over, with a slimmer majority also predicting further hikes before the end of 2026.
Finder home loans expert Richard Whitten said a cash rate hold would be welcome news for exhausted home owners.
“After three hikes in a row, a pause will feel like a win for borrowers who’ve watched their repayments climb all year,” he said.
“But the cash rate is still at its highest level in years, and more than half of our experts think there’s another hike still to come.”
The cash rate is currently at 4.35 per cent after an 0.25 per cent hike in May.
Madeline Dunk from ANZ is among those expecting a hold on further hikes next Wednesday.
“We think the RBA will keep rates on hold in June. While an August rate hike is a risk, we think the activity side of the economy is slowing and will justify the RBA keeping rates at 4.35 per cent,” Dunk said.
Brodie Haupt from WLTH agreed, but pointed to potential further hikes this year.
“After three rate hikes within the first half of the year, the RBA board could keep the cash rate on hold in June as evidence of an economic slowdown and a cooling job market begins to show,” Haupt said.
“However, the worst may not be over for home owners as global political tensions could mean uncertainty later in the year.”
Almost two in five who weighed in tipped the cash rate to finish 2026 at 4.6 per cent. Another one third expected it to hold at 4.35 per cent.
A significant 40 per cent of home owners said they struggled to pay their mortgage in May, according to data from Finder’s Consumer Sentiment Tracker. That’s up from 35 per cent in January this year.
Whitten said if a mortgage-holder had not reviewed their home loan since the start of the year, they were almost certainly paying too much.
“Now is the time to ask your lender for a better rate – or refinance,” Whitten said.