One RBA decision can affect home ownership for more than a decade, research finds

As the RBA weighs up another, even multiple rate rises before the end of the year, Governor Michele Bullock has been issued a sombre warning. New research has revealed: just one interest rate rise can affect home ownership for more than a decade. Emerging research by University of Sydney economist Dr James Graham has found a single Reserve Bank of Australia interest rate rise could suppress home ownership for more than a decade, with young Aussies bearing the brunt of the impact. MORE: Boomers smashed by new Aus tax, others pay less The RBA is expected to raise interest rates again next Tuesday. Picture: NewsWire/ Monique Harmer Using housing statistics and a detailed large-scale model, Dr Graham from the School of Economics, is analysing how monetary policy affects Australians’ ability to buy and own homes over time. Dr Graham said early findings from the study show a standard 0.25 percentage point increase in interest rates leads to an immediate five per cent decline in home purchases, and buying remains low for up to two years. “Home ownership rates also fall following a rate rise, declining 0.1 percentage points within the quarter following a rise and continuing to fall for fou...