Earlier this afternoon the Reserve Bank of Australia (RBA) board decided to leave the cash rate on hold, at a record low of just 1.50%. It was the last RBA’s last cash rate board meeting for the year.
The RBA noted in their press release:
- Inflation is slightly below RBA’s targets;
- Employment growth has been fairly good, with good prospects looking into 2017;
- Commodity priced have been gaining strength.
In relation to housing, RBA said in their statement “conditions in the housing market have strengthened overall, although they vary considerably around the country. In some markets, prices are rising briskly, while in others they are declining. Housing credit has picked up a little, although turnover of established dwellings is lower than it was a year ago. Supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitutde to lending in certain segments. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades”.
Recently we reported that some banks have increased interest rates indpenedntly of the RBA. It is important as ever to speak to a Mortgage Broker when going for a home loan.
The next RBA board meeting will be in Febraury 2017.
I’m about to be in the market for a home loan
- If you are getting close to buying your first home why not check out our easy to use home loan comparison page to see how rates have changed since RBA’s rate cut back in August.
- Geting ultra close? We recommend you arrange an appointment with an FHBA Mortgage Broker who can discuss your ccircumstances, showcase home loan options you may be eligible for and discuss the differences between a fixed rate versus a variable rate. For more on FHBA Mortgages please click here.
I’m still saving for a home deposit
Since the August rate cut many banks have adjusted deposit product interest rates. You can use our free & easy to use comparison pages to ensure you are getting a great deal on your saving accounts!
I want to know more about the RBA decision
To read the full RBA statement from the December board meeting please click here.