Fair 22° 
The interest rate rise this week, the first Reserve Bank rise since March 2008 marks the start of an upwards trend in interest rates for the foreseeable future. Market analysts are tipping rate rises again in November and December and predict that the average variable mortgage rate will be around 6.5% before the end of the year (still well below the last 20 year average of 8.8%).
The increase in interest rates is unlikely to see any real burden placed on recent borrowers as banks have been quite ‘gun shy’ lately and will most certainly have assessed loan applications based on a higher interest rate than what we see at the moment. With most lenders lately requiring a minimum deposit of 10% and a track record of genuine savings the banks have been showing a much more considered approach to lending. Current mortgage arrears rates are reported to be 0.5%, the lowest rate in quite some time.
The number of investors entering the market is increasing solidly as first home buyers continue to taper off and there are still plenty of owner occupiers looking to buy. According to information provider RPDATA the number of properties going onto the market in the past three weeks is the highest in many months but the total number of properties for sale is decreasing. A clear sign if any that sellers are showing confidence in the market and demand from buyers is increasing at a faster level than stock coming onto the market; the next six months could be very interesting!