CoreLogic reported a preliminary clearance rate of 78.2% across 2,845 homes last weekend, maintaining a string of 15 weeks above 77%. Prices and rents continue to rise strongly. Australia’s largest bank, CBA, lifted the three- and four-year fixed rates for owner-occupiers paying principal and interest by five basis points to 2.19% and 2.24% respectively. It follows the bank’s move to lift the four-year rate by 20 basis points from 1.99% in March, which effectively rang the bell on cheap rates and alerted borrowers to fix before they moved higher.
Banks says their wholesale funding costs are rising, despite efforts by central banks around the world to lock in ultra-low rates.