The Westpac–Melbourne Institute Consumer Sentiment Index slipped 1.7% lower to 92.9 in January from 94.5 in December.

• Deteriorating views on near-term outlook drive the move.
• About two thirds of consumers now expect mortgage rates to rise in 2026.
• Consumers less confident about job prospects.
• Less negative on ‘time to buy a dwelling’ – most 18-34 year olds positive. 
• House price expectations cool a little but still very bullish.