The board claims that today's increase in interest rates is a further step in the normalisation of monetary conditions in Australia.

The national fall in home values was driven by sharp monthly declines in Sydney (down 1.6 per cent) and Melbourne (down 1.1 per cent)

In case banks decide to pass on in full, the interest rate rise will increase the repayments by $65 a month on a $500,000 mortgage, and double that on a million-dollar loan.

The homebuyer will need to have a deposit of 2 per cent and qualify for a standard home loan with a participating lender to finance the remainder of the purchase.

There is a concern that national spending in Australia has declined to lockdown levels with people in Sydney and Melbourne dragging the national spending as surging coronavirus cases keep them from going out.