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%, yet again.
The RBA noted:
- Business confidence is above average
- Australia’s economy is benefiting from a rise in commodity prices
- Inflation remains low
- Wage growth remains slow
In relation to housing, the RBA comments were similar to last month’s statement. The April press statement read “conditions in the housing market continue to vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades”.
Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development”.
The next RBA board meeting will be on the 2nd of May.
Compare current home loan rates here
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 this easy to use home loan comparison table to see a range of rates currently on offer?
- Getting ultra close? We recommend you arrange an appointment with an FHBA Lending Adviser who can discuss your circumstances, showcase home loan options you may be eligible for and go through the home loan process with you. For more on FHBA Mortgages please click here.
I’m still saving for a home deposit
Unfortunately the rate of interest on savings accounts are low at the moment (compared to more recent historical times). But when saving for a home deposit, every bit counts. See if you can give your savings a boost by checking out these free & easy to use saving accounts comparison tables!
I want to know more about the RBA decision
To read the full RBA statement from the April board meeting please click here.
Written By,
First Home Buyers Australia
