A higher Official Cash Rate to help curb inflation, but how will it affect our housing market?

While increasing the OCR by 0.5 percent to two percent doesn't come as a surprise -- the Reserve Bank's forecast of a lift to 3.25 percent by the end of the year, did.

CoreLogic chief property economist, Kelvin Davidson says it'll flow through to mortgage rates -- which will have a more negative impact on the housing market than first thought.

He says the bank initially suggested a nine percent fall in house prices, now it's saying a 12 percent fall.