Chart1: Perth House Price Momentum: The Interest Rate Lag

Update 28/11/25

The interest rate cycle suggests a cooling or modest price correction is likely in 2026, but the structural shortage of available housing may soften the impact compared to historical cycles.

Blue (FEDFUNDS)US Federal Funds RateThe key US central bank rate, influential due to global capital flows and the impact on the AUD/USD exchange rate. Orange (RBA Cash Rate)Australian Cash RateThe primary driver of domestic borrowing costs and mortgage rates. Grey (Delta)Lagged Price MomentumPerth Median House Price Change (year-on-year, lagged 6-9 months). This is the dependent variable we are tracking.