What interest rates mean for your next move

When rates move, everyone has an opinion about the property market. The honest answer is that the effect varies with who you are, and a headline average rarely describes your situation.

Start by asking what you are trying to do: buy for the first time, trade up, invest, or stay put. The same rate change reads differently in each case.

If you are buying

Higher rates reduce what lenders will let you borrow, so the practical effect is a lower ceiling rather than a lower price. Lower rates do the reverse, and tend to bring more buyers into the market at once, which can lift competition. Use a repayment calculator at a rate a couple of points above today's to see whether you would still be comfortable.

If you are selling

Sellers are affected through demand. Fewer buyers at a given price means longer campaigns, not necessarily lower results. Pricing realistically and presenting well matter more when the market is cautious.

If you are staying

If you hold a fixed rate, ask when it ends and what your options are. Many owners benefit from speaking to a broker six months ahead of a rollover, rather than accepting the default offer.

Whatever the direction of rates, the strongest plan is the one you can afford under a range of outcomes, not only the best case.