Consumer confidence down after Westpac interest rate rise announcement: Roy Morgan

By Rebeccah Elley ·
Advertiser disclosure

According to research by Roy Morgan, consumer confidence has fallen 2.0% in the wake of Westpac’s announcement to increase its standard variable interest rates for both owner occupiers and investors by 0.20%. The drop follows a growth in consumer confidence of 5.1% in the previous week.

Westpac has lifted its variable home loan interest rates in a bid to meet restrictions by APRA that require Australian banks to increase their capital by 16% to at least 25% by July 2016.

According to Domain Group dropping consumer confidence levels due to Westpac’s move to increase variable rates lead to slowing auction clearance rates in both Sydney and Melbourne over the weekend.

RELATED:

- How a rate rise could affect you

- Give yourself an instant pay rise by refinancing

In a statement Roy Morgan said Westpac’s decision to increase home loan rates, combined with slowing momentum in the property market is likely to be the reasons for the confidence drop.

“The fall in ANZ-Roy Morgan Australian Consumer Confidence last week was likely driven by deteriorating sentiment about the outlook for the housing market,” explained ANZ Co-Head of Australian Economics Felicity Emmett.

Emmett said she expected the decline in property sector confidence to affect residential prices and construction. “A softer housing market is likely to weigh on consumer confidence, economic growth and employment.”

"Housing has been a key pillar of growth this year, and without that support in 2016, we expect the economy will need further stimulus in the form of another 50bps of rate cuts from the RBA. While the focus is turning to the November RBA board meeting, we continue to expect the Bank to wait until February to change policy settings.”

The research by Roy Morgan also revealed the overall outlook of economic conditions over the next five years has dropped by 3.1%.

Are you thinking of refinancing to a new home loan? Visit our refinancing hub for helpful tips and tools for making the mortgage switch.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.

    Go to site
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.