Sydney, June 17, 2026, 21:02 AEST
- Australian and U.S. mortgage rates are still high, leaving borrowers with little short-term relief.
- Melbourne broker calls out discretionary spending as credit market tightens.
- Rate uncertainty is still the main risk for would-be buyers, not just consumer habits.
Young Australians are facing a “cost of spending crisis,” according to a Melbourne mortgage broker, a claim that’s started to gain traction. This is happening as borrowers in both Australia and the US head into another week of high home-loan rates.
RBA keeps rates on hold, warns it could hike again The Reserve Bank of Australia held its cash rate steady at 4.35% on Tuesday. It said inflation remains too high and signaled it might raise rates again, which keeps the heat on mortgage holders and people trying to buy their first home.
Mortgage broker Nick Rabba, who works with first-home buyers, wrote in a public post that many clients are limiting how much they can borrow by spending too much on things like Uber Eats, freebie subscriptions, designer brands, big trips and going out a lot. “We aren’t in a cost of living crisis. We’re in a cost of spending crisis,” Rabba said. LinkedIn
Yahoo Finance Australia said Rabba was speaking to young Australians looking to buy property, a group already hit by high rents, steep house prices and tighter loan checks.
The comments run counter to official data, which show living costs continue to climb. Australia’s consumer price index gained 4.2% over the year to April, according to the Australian Bureau of Statistics. Housing rose 6.3%, transport jumped 6.6%, and food and non-alcoholic drinks were up 2.8%.
U.S. mortgage rates held in the mid-6% range, according to rate trackers. As of June 16, Bankrate showed the 30-year fixed purchase mortgage at 6.59% and the 15-year at 5.95%. Refinance rates for a 30-year fixed loan were a bit higher, coming in at 6.69%.
Average 30-year mortgage drops to 6.31%, says Yahoo Finance
Yahoo Finance’s U.S. mortgage desk put the average 30-year fixed rate at 6.31% on June 16, off 4 basis points from the day before. One basis point equals one-hundredth of a percentage point. Norada Real Estate listed a 30-year fixed at 6.35% and 5.78% for a 15-year rate on June 15, calling it a slight easing in monthly costs. Yahoo Finance
Other measures didn’t look as positive. Freddie Mac said its 30-year fixed mortgage rate came in at 6.52% for the week ending June 11, rising from 6.48% the previous week. That compares to 6.84% a year ago.
Fed policymakers were set to announce their June 16-17 decision at 2 p.m. in Washington, with a press conference at 2:30 p.m. U.S. borrowers kept an eye on the direction of rates, less on daily shifts in mortgage quotes.
Australia’s rate outlook is dividing banks and economists. Commonwealth Bank and ANZ both told The Guardian they think rates have already peaked, but Westpac is still looking for a hike in August. RBA Governor Michele Bullock said, “If we need to increase again, we will.” The Guardian
Rabba says lenders look at the details. He said clients don’t always realize how things like subscriptions, takeout, or travel loans show up in serviceability checks—the tests banks use to see if someone can keep paying a loan.
But blaming behaviour too much carries its own risk. If inflation stays stubborn or central banks hike rates again, careful savers could still see lenders slash borrowing limits. Renters saving for a deposit might face higher housing and energy bills before they get a foot on the ladder.
The competitive landscape is shifting. Realtor.com economists warn that sellers asking too much may see their homes linger and lose leverage. Senior economist Joel Berner said homes that close within four weeks of listing tend to fetch higher prices than those on the market longer.
Buyers get a messier message than what shows up on social media. What you spend does count, and it can be key just ahead of applying for a loan. But interest rates are still pulling most of the weight.
