RBA Market Update August 2025
🔍 August 2025 Mortgage Market Update
#MortgageUpdate #PropertyMarket #InterestRates
Hi, I’m Jeremy Harper, Director of HFinance, and here’s what you need to know from the latest RBA statement — and what it could mean for your mortgage and property plans.
📉 The cash rate is now 3.60%, down from 3.85% earlier this year, and markets are tipping it could head towards ~3.1% by early 2026. Banks have already passed on the cuts in full, so both variable and fixed rates are now ~25–30 basis points lower than in May.
💰 Mortgage repayments are easing. On average, households are paying ~0.3% less of their income on scheduled repayments compared to the late-2024 peak. Many of my clients are taking this opportunity to rebuild buffers in offset accounts or add to extra repayments.
🏡 The housing market is starting to move. Prices are up about 3% since January, clearance rates are stronger, and detached home sales are picking up — although affordability challenges are still very real.
📊 Inflation is sitting at 2.7% (underlying), close to the RBA’s sweet spot. Headline inflation will likely bump above 3% later this year as electricity rebates drop off, and rents are still climbing at 4.5% annually.
⚠️ The risks? If the labour market stays tight and rents keep rising, rate cuts could slow. On the other hand, if households remain cautious and save more, it could put the brakes on the recovery.
💡 My advice: Expect further modest rate relief into next year, but keep an eye on inflation and employment data. If you’re planning to buy, refinance, or invest, now is the time to prepare so you can move quickly when the right opportunity comes up.
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