The Westpac-Melbourne Institute Consumer Confidence Index lifted 9.4% to 85.8 in April, with confidence across mortgage holders growing 12.2%. 

The largest gains in confidence were observed across the outlook for property prices, with the survey recording an uptick of 16.7%. 

Westpac Chief Economist Bill Evans noted confidence in the outlook for house prices has boomed. 

“The national index of House Price Expectations lifted by 16.7% to 130.31, only 2.8% below its level in April last year, just before the tightening cycle began,” Mr Evans said. 

“The index has increased by a remarkable 43% since its recent low in November last year.”

Still, an index rating of 85.8 is still pessimistic by historic standards.

Across the states, confidence in the outlook for property prices lifted in Western Australia by 36%, Queensland by 30%, New South Wales by 16% and Victoria by 9.5%. 

The growing confidence surrounding property price expectations comes as CoreLogic’s Home Value Index for April recorded a 0.6% lift in national property prices for the first time in 10 months. 

Despite the uptick in confidence, Mr Evans detailed survey respondents are remaining cautious with 34.11% still expecting the Standard Variable Rate to be raised by more than one percentage point over the next year. 

“That proportion is certainly down from 44.55% in March and 59.64% in November but still points to considerable apprehension around interest rates on the part of consumers,” he said. 

“With underlying inflation still likely to be in the 6.5%–7.0% range and the unemployment rate holding around fifty-year lows the case for extending the pause in May is likely to be challenged.

“The Board’s decision will be to weigh the “here and now “evidence against its two-year forecast.”

Read more: What does April's cash rate pause mean for the remainder of 2023?

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Rates
Features
Conditions
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Provider
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  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
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Save Account

  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • No monthly or international fees on any of your transactions.
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400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
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Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
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02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
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Online Savings - Premium Saver

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    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Deposit at least $1,000+ each month from an external source
    • Make 5 or more eligible transactions. Grow your savings balance each month
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    Savings Maximiser

    • Deposit at least $1,000+ each month from an external source
    • Make 5 or more eligible transactions. Grow your savings balance each month
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    Disclosure
    • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
    • Retrace your spending steps into categories with Spending Footprint.
    • No monthly or international fees on any of your transactions.

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    Important Information and Comparison Rate Warning

    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of December 26, 2024. View disclaimer.

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