Business · Economy · 3 hrs ago
Mortgage holders’ confidence falls to its lowest level since 1994
Mortgage holders in Australia are more pessimistic than at any point since 1994, according to a Westpac survey released in November.
Overall consumer sentiment also fell to a four-year low, with households worried about the economy and persistent cost-of-living pressures.
The mood echoes earlier crises, though Westpac said the current economic situation is not as extreme as the pandemic and its aftermath.
Many households feel they have little control over rising costs, including fuel prices.
After five interest-rate increases this year, nearly three in four survey respondents expected another rise within the next 12 months.
Financial markets are now pricing in a chance of rate cuts from the middle of next year, as global oil prices retreat.
The government’s mid-year budget update is due next month and is expected to include spending cuts aimed at containing inflation.
Confidence among mortgaged Australian households fell to its lowest level in records stretching back to 1994, according to the latest Westpac survey.
The survey’s consumer sentiment index fell in November to a four-year low as households grew more pessimistic about the economy.
Westpac economist Matthew Hassan said households showed a sense of helplessness over pressures including rising fuel prices.
Nearly three in four survey respondents expected another interest rate rise over the coming 12 months, after five rate increases this year.
Financial markets were pricing in a greater than 50% chance of an RBA rate cut by August next year.
- Who
- Australian mortgage holders and other households surveyed by Westpac.
- What
- Confidence among mortgaged households fell to its lowest level in records dating back to 1994.
- When
- November 2026. The article was published on 10 November 2026.
- Where
- Australia.
- Why
- The article links the pessimism to persistent cost-of-living pressures, weak economic growth and rising fuel prices.
This story does not have two clearly opposing sides.
The global oil benchmark tested a post-Iran war high of nearly US$118 a barrel.
RBA governor Michele Bullock warned that the year ahead would feel like a recession.
The Westpac survey recorded a four-year low in consumer sentiment and the weakest mortgage-holder confidence in records dating back to 1994.
Markets put the implied probability of an RBA rate cut above 50%.
A decrease in the rate to 4.6% was fully priced in by markets.
- Survey
- Westpac consumer sentiment index fell to a four-year low in November
- Mortgage-holder confidence
- Lowest in records stretching back to 1994
- Rate increases
- Five this year
- Expected rate rises
- Nearly three in four respondents expected another increase over the coming 12 months
- Market pricing
- More than 50% implied probability of an RBA rate cut by August next year
What people are saying
feel like it’s a recession
There is a similar feeling of helplessness now.
Prior to that, readings this weak had only ever been seen in the economy’s darkest moments: at the onset of the Covid pandemic; the height of the GFC; and during the recessions in the early 1990s and early 1980s.
The treasurer is doing a great job