MORTGAGE holders are set for a breather ahead of Christmas after the Reserve Bank of Australia (RBA) kept the cash rate steady.
As widely tipped by experts and economists, the RBA held the cash rate target at 4.35 per cent at its meeting on Tuesday afternoon.
The reprieve follows five interest rate hikes since the first of the year was handed down in February, lifting it from 3.1 per cent to 3.35 per cent.
Modelling from Canstar showed the average mortgage holder in Newcastle and Lake Macquarie is paying an extra $539 each month since the start of the year.
This is based on an 80 per cent loan of $652,375 on a median property value of $815,469.
A pause on interest rate hikes follows a lift of 25 basis points in November after holding interest rates steady for four months.
The first increase since June came after higher than expected inflation levels in September, largely due to high fuel prices and housing rents.
Relief for mortgage holders follows reports that inflation in Australia is easing faster than expected.
Data from the Australian Bureau of Statistics showed the consumer price index rose 4.9 per cent annually in October 2023.
October's rise was down from 5.6 per cent in September, and was well below the expected rate of 5.2 per cent that many analysts were predicting.
Market analysts and economists widely tipped rates to be kept on hold in December at the RBA's final monetary policy decision for 2023.
Economists from all four of the big banks (NAB, CBA, Westpac, and ANZ) predicted that the central bank would pause the cash rate at 4.35 per cent.
Finder's latest RBA Cash Rate Survey also found that 82 per cent of experts and economists believed the RBA would hold the cash rate in December.
The majority of panellists believe the cash rate has peaked at 4.35 per cent, however, nearly half (46 per cent) tip another rate rise is yet to come.
Despite five interest rate hikes in 2023, Newcastle listing agent Patrick Skinner, from Spillane Property, noted an increase in buyer urgency as the end of the year approached.
"Buyers either want to have a property secured before Christmas or to be ready in time for the new school year," Mr Skinner said.
"Anything that sells now, you have a four to six week settlement period and buyers want to be in before school starts so you will find a bit of urgency on that side of things."
Ms Skinner said investment grade stock had struggled in the wake of rising interest rates this year.
"A lot of the sellers in the current market with these interest rate rises are those with one and two bedroom units who want to free up some cash," he said.
"That's why there are more of those on the market currently that are taking a bit longer to sell."
Graham Cooke, head of consumer research at Finder, said the cash rate hold would be welcome news to mortgage holders.
"Inflation is the one number thing the RBA is most heavily influenced by, so this downward trend is great to see," Mr Cooke said.
"Aussies with a home loan can now look forward to two months of certainty, as the RBA does not make a decision in January - and can only make eight cash rate changes next year."
The pause on rate hikes follows reports that house and unit values across Newcastle and Lake Macquarie recorded the strongest growth in NSW in November.
CoreLogic's national Home Value Index (HVI) report released last week showed houses and units in the region experienced value growth of 1.3 per cent last month.
