‘It made us nervous’: rising interest rates and falling property prices squeeze household budgets

Successive rate hikes to cost average homeowner an extra $610 a month in mortgage repayments compared to what they were paying in April

• Follow our Australia news live blog for the latest updates
• RBA lifts official cash rate by 50 basis points to 1.85%
• Get our free news app, morning email briefing and daily news podcast

Australians who purchased their first home as prices soared in recent years are facing another interest rate rise at the same time as the value of their property is likely falling, after the Reserve Bank of Australia lifted the cash rate to 1.85% on Tuesday.

Graham Cooke, the head of consumer research at Finder, said the successive cash rate hikes will cost the average homeowner an additional $610 a month compared to what they were paying in April.

Sign up to receive an email with the top stories from Guardian Australia every morning