The chief property economist at CoreLogic believes a rise to the official cash rate will lead to a cooling of the housing market.
Many retail banks lifted their floating mortgage rates after the central bank yesterday increased the benchmark interest rate to 0.5 percent.
The recent very low rates have been blamed for soaring house prices.
Corelogic's Kelvin Davidson told Morning Report the hike will contribute to a market slow down.
"We're looking at possibly mortgage rates going up from sort of 2.5 percent now to something like 4.5 percent potentially over sort of a two year horizon, so that's big change for people and proportionally that's the thing that from such a low base it's a fairly big increase."
