A nail-biting week for mortgage holders awaits with the prospect of another rate rise – or rises - a real risk of becoming reality.

While the Reserve Bank Governor says the Board is mindful of the impact of rate increases on struggling households and the jobs market, it is equally adamant it will make a move if it deems inflation is not coming down fast enough.

With uncomfortably high inflation data released last week for non-discretionary items, the Reserve Bank may feel it has no option.

But falling prices in key discretionary categories are worth noting too, as this suggests consumers are actually changing their behaviour in response to the cost of living crisis.

For many, a rate rise will be met with dismay.

Some owner-occupiers may be forced to consider the financially and emotionally distressing reality of selling their properties.

Some investors who have struggled to navigate the rate rises over the last year or so may find another increase the last straw.

This of course would be more terrible news for renters already suffering from a lack of choice.

The impact of a potential rate rise on house prices is another consideration. To date, the rebound in values has surprised many.

Rate rise aside, on the auction front, we expect activity to be business as usual for the next few weeks. Recent Ray White figures have noted a fractional decline in the average number of bidders per Sydney auction and clearance rates have slightly eased into the high 60s in recent weeks.

In other words, conditions remain relatively stable and due to the undersupply of housing, the prices being achieved by vendors remain strong.

The Reserve Bank has its part to play in this stability.