Posted: 06 Feb 2026
On the 3rd of February 2026, the Reserve Bank of Australia (RBA) increased the official cash rate by 0.25% raising it to 3.85%, marking its first rise in over two years. This decision was driven by stronger than expected inflation pressures and a resilient jobs market, with the RBA indicating inflation is likely to remain above its 2–3% target for some time. (Reserve Bank of Australia)
For local home buyers on the Sunshine Coast Hinterlands, this rate adjustment matters. When the RBA lifts the cash rate, banks typically pass on higher costs through increased variable mortgage rates. While exact rises vary by lender, industry estimates suggest mortgage repayments on a typical loan could increase by tens to hundreds of dollars a month, depending on loan size and type. (Real Estate Australia) This can reduce borrowing power, meaning buyers may qualify for a smaller loan than before, an important consideration when planning your purchase.
On the seller side, higher interest rates often cool market activity. After several interest rate cuts last year helped fuel strong housing demand and rising values, the recent rise may lead to some buyers taking a more cautious approach. Annual home price growth is still expected this year but at a slower pace than in 2025. (Real Estate Australia) That can create a smarter negotiation environment for informed sellers who price well and market strategically.
Market indicators like the ASX Rate Tracker also reflect how investors and lenders anticipate future rate moves, signalling the potential for more tightening before the RBA feels confident inflation is sustainably under control. (Australian Securities Exchange)
In summary, rising rates could result in higher repayments for buyers and a more measured market for sellers. House prices are still expected to rise in the Sunshine Coast Hinterlands however there may be an extended average days on market.