Your Mortgage For 2010 – Where are we heading?

It looks like for steam ahead for the Australian economy and this generally means that it looks like interest rates are on the way up.  Currently, the RBA have interest rates at 3.75% and economists are predicting a rise to 4.75% before the end of 2010.

Here is a summary of what we can expect for 2010 from the latest news headlines.

– We can expect higher interest rates at the end of the year.  Some economists are predicting a rate rise of at least 1 percent

– Banks are still going to complain about higher funding costs and are likely to  increase rates higher than the recommended increases stated by the Reserve Bank of Australia. However, this may limit cash rate hikes implemented by the RBA

–  Rents are likely to rise in 2010 due to the housing shortage

–  Loan defaults are likely to rise as interest rates increase catching out many first home buyers

– Many more to come….

As for the predictions mentioned above they are more likely to happen than not, however, the economy is a living breathing beast and where it leads it is any ones guess.