October 01, 2013
The recent raft of positive economic data has encouraged the Reserve Bank of Australia to leave the official cash rate on hold at 2.5% this month, according to Mortgage Choice.
Mortgage Choice spokesperson Jessica Darnbrough said rising consumer sentiment teamed with improving business confidence and climbing dwelling values showed there was no urgent need for a rate cut in October.
“Consumer sentiment and business confidence have both seen a dramatic improvement over the last month, hitting levels not seen in recent times. According to the Westpac-Melbourne Institute Index of Consumer Sentiment, confidence rose 4.7% in September – to sit 13.8 per cent higher than when the Reserve Bank first cut the official cash rate in November 2011,” she said.
“Similarly, the NAB Monthly Business Survey found business confidence strengthened considerably in August, rising to its highest level since May 2011.
“In addition, capital city dwelling values recorded a modest 0.5% increase in August, taking the cumulative recovery in residential values to 7.0% since the market bottomed out in May last year.”
Ms Darnbrough said with property prices on the rise and interest rates sitting at historically low levels, it may be the right time to get onto the property ladder or review your current home loan.
“The combination of historically low rates and competitive offerings from Australia's lenders is extremely appealing for anyone considering purchasing property in the near future. By looking at your purchasing options now, you may be able to get ahead of the rising property prices.
“On the flipside, for those that already have a mortgage, low interest rates provide mortgage holders with the perfect opportunity to repay their home loan faster and achieve their next financial goal sooner.”
For further information or to arrange an interview, please contact:
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0448 240 047
(02) 9018 8603 / 0412 550 004
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.