With most economists expecting interest rates to start falling later this year, prospective home buyers might be weighing up whether to buy now for fear of strong competition for stock, or waiting until repayments are lower. The financial markets and private sector economists expect the Reserve Bank to start cutting interest rates later this year. But the average forecaster is expecting just one cut in the next 12 months, of 0.25%. {chart} While rates have risen 13 times since May 2022, the drop won’t be so far nor so fast. Even by the end of 2026 rates will probably only be around 1% lower than now. And this may be ... (full story)