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 first board meeting for the year.
The RBA noted:
- That other developed economies are out-performing Australia currently.
- That Australia GDP growth and inflation is expected to rise slightly.
- Employment growth has been fairly good, with good prospects for the year ahead.
In relation to housing, RBA said in their statement “conditions in the housing market vary considerably around the country. In some markets, conditions have strengthened further, 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 a couple of decades. Borrowing for housing has picked up a little, with stronger demand by investors. With leverage increasing, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments”.
Recently we reported that some banks have increased interest rates independently of the RBA as well as small lenders offering key points of differences to larger lenders. It is therefore as important as ever to speak to a Mortgage Broker when going for a home loan.
The next RBA board meeting will be on the 7th of March.
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 our easy to use home loan comparison page to see a range of rates currently on offer.
- 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 decreased savings interest rates. Try 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 February board meeting please click here.
Written By,
First Home Buyers Australia
