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%.
The RBA noted in their press release that “inflation remains quiet low” & so does wags growth. In relation to housing, RBA said in their statement “supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The best available information suggests that dwelling prices overall have risen moderately over the past year and growth in lending for housing purposes has slowed. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities”.
Co-founder of First Home Buyers Australia (FHBA) Daniel Cohen said “there are three more RBA meetings left for 2016. We will all be watching with interest to see if record low interest rates continue”. Most commentary experts are now predicting another rate cut later in the year could be on the cards. They are also suggesting that regulatory bodies may have to step in and make sure the housing market doesn’t get out of control. We will let you know if anything happens in that regard.
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 in August.
- Getting ultra close? We recommend you arrange an appointment with an FHBA Mortgage Broker who can discuss your circumstances, 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. To find out what banks are currently offering in relation to savings interest rates you can try our free & easy to use comparison pages:
I want to know more about the RBA decision
To read the full RBA statement from the board meeting please click here.