March 02, 2021
The Reserve Bank of Australia (RBA) has today made the decision to maintain the cash rate target at 0.10% at its March monetary policy meeting.
Speaking about the decision, Susan Mitchell, CEO of Mortgage Choice said, “The latest decision from the Reserve Bank comes amid positive economic data.”
“Home-buyer ‘fear of missing out’ sentiment bolstered by the low interest rate environment and government support is seeing momentum build in the Australian housing market. The latest data from CoreLogic reveals that national dwelling values continue to trend up with home values surging 2.1% in February, the largest month on month increase in 17 years.”
“Housing finance data from the Australian Bureau of Statistics suggests the current housing boom shows no sign of abating with loan approvals surging 10.5% in January. This is consistent with what we’re seeing at Mortgage Choice, with our February home loan applications reaching the highest monthly level since 2017. Our network is flat out trying to keep up with demand.”
Ms Mitchell added with fixed home loan rates at less than 2%, prospective and current homeowners that are looking to lock in part or all of their mortgage should be speaking with a mortgage broker.
“Customers are taking advantage of extra sharp fixed rates in the market with almost half of home loan applications in February including a fixed portion of the mortgage,” said Ms Mitchell.
She said improved economic conditions also continue to inspire confidence in Australian consumers.
“The Westpac-Melbourne Institute of Consumer Sentiment increased by 1.9% in February,” said Ms Mitchell.
The labour market continues to recover, with January Labour Force data from the Australian Bureau of Statistics revealing the unemployment rate decreased to 6.4%.
Ms Mitchell said, “Although we’ve seen continued improvement in the jobs market, the unemployment rate remains below the RBA’s target and low inflation persists, which should keep the cash rate on hold for some time.”
“Despite no change to the cash rate today, my advice to borrowers remains the same. Speak to an experienced mortgage broker to see if you’re still getting a good deal on your home loan. The home loan market remains extremely competitive, giving you choice and great bargaining power when shopping around for a new loan.”