Rate rise to add $126 to monthly loan repayments on a median Canberra house

"Every single interest rate rise is impacting them," mother-of-three Fiona Guy said.

The Reserve Bank's decision to raise the cash rate in June takes the official cash rate to 4.1 per cent, 400 basis points higher than April last year.

If passed on by banks in full, Tuesday's rate rise would add $126 to the monthly loan repayments on a median Canberra house or $80 on a median unit, modelling by Canstar shows.

The increase was something Fiona and Paul Guy had anticipated. They recently sold their Chisholm family home of 15 years after buying a house better suited to just the two of them, now their children have moved out.

Rising interest rates was something they factored into their purchase.

"We are in the fortunate enough position that we're able to afford those rate rises," Mr Guy said.

"I've always thought if you buy and sell in the same market, it doesn't matter if the rates are going up or if they're going down."

But it doesn't mean the 12 rate rises in a little more than a year aren't having an impact.

"Do the interest rates hurt as they're going up? Of course they do," Mrs Guy said.

Instead they're trying to think about the "big picture" of their home loan, rather than agonising over every rate rise.

On their mind, however, are their three children who are first home owners and feeling the pinch.

"They're only in their early 20s. I'm really proud of them because they bought their home ... but they're looking at dollars," Mrs Guy said.

"Every single interest rate rise is impacting them ... we now need to start also thinking about, should we be helping them as well?"

The couple bought and sold through Kelsey Tracey of Luton Properties Tuggeranong, who said despite some "nervousness" in the market there were still plenty of buyers coming through open homes.

"I think [buyers are] just being more cautious with what they're offering and how quickly they're making offers," she said.

Ms Tracey said while record prices are still being achieved in some suburbs, sellers needed to align their expectations with the market.

"It's just really important for them to be listening to buyer feedback, agent feedback and also just doing their own research on what's actually sold within the last three months as opposed to what sold 12 months ago because they're just in a completely different market," she said.

The latest cash rate rise comes at a time when Canberrans are spending about 44 per cent of their after-tax income on mortgage repayments - the highest portion of income since 1990.

Ray White chief economist Nerida Conisbee said while the Reserve Bank's decision was in response to "stubbornly high" inflation, it was creating a headache for housing.

"As more countries head into recession, at this point, it does look like the RBA's 'narrow path' will get us through while taming inflation," she said.

"In the meantime however, it is creating a headache for renters, buyers and new housing supply that is going to take many years to resolve. And every interest rate rise is extending that pain."

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Real Estate Institute of Australia president Hayden Groves said the June rate rise announcement was disappointing.

"Whilst the RBA will stick to economics, they cannot be immune to the political pressures with small business and young families holding a mortgage most impacted by the latest rate increase," he said.

"The pace of rate increases leaves the economy in unchartered (sic) territory with the official cash rate now at its highest level in more than a decade.

"Some underlying inflationary pressures in the economy cannot simply be fixed by hiking interest rates."

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