Today’s announcement of a 0.25 rise in official interest rates will affect those who can least afford it and make it harder for many people to get into the housing market.

REIV CEO, Enzo Raimondo commented that the latest rise will have more of a negative impact for first home buyers and low income families.

“This rise will add $36 to the average monthly loan repayment pushing that up to $1658."

“The latest rise together with increasing petrol prices and inflation will hit families’ disposable incomes hard."

“There will be no relief for some families. Coming on top of petrol and inflation it’s a big impost."

“We believe the latest rise will have a negative impact on the lower price brackets as some buyers are priced out of the market."

“This means that at the affordable end of the market it may lead to a slowing."

“In the REIV June quarter Metropolitan Melbourne Median Prices we saw the median value of the top 25 per cent of properties increase by 6.7 per cent over the last 12 months, however the bottom 25 only increased by 2.9 per cent."

“The latest rise will also exacerbate the low rental vacancy rates which will lead to further pressure on rents."

“It will take some weeks for the true impact of this rise to be seen in the market as many people are already committed to selling or buying and will need to complete their purchase or sale."

“However the impact may be more pronounced during the spring selling season.”

“The REIV will be watching the market and will conduct a survey of members to gauge the impact in around four weeks,” Mr Raimondo concluded.