First home buyers encouraged to ‘wait’ and watch interest rates | WATCH - Property News AU/NZ | propertynoise.co.nz & propertynoise.com.au

PHOTO: Reserve Bank Governor Adrian Orr says if they don’t rise, houses will be more expensive. (Source: Breakfast)

First home buyers are being encouraged to ‘wait’ and see what interest rates will do, following the official cash rate hike, and as the housing market continues to heat up.

Reserve Bank boss warns first-home buyers mortgage rate shocks are ‘part of the real world’

The Reserve Bank on Wednesday said the country should expect interest rates to keep rising, lifting the official cash rate by 25 basis points, to 0.75 percent.

Reserve Bank Governor Adrian Orr on Thursday told Breakfast he felt encouraged by the country’s economy, but had some advice for those looking to start out in the housing market.

“House prices have risen, yes, those who own homes are feeling slightly wealthier, those who want to have first homes wait and see what happens,” said the Governor.

“Because if I don’t raise interest rates they’re going to be more expensive, if I do well you might be able to afford one in the future.”