Yesterday the Reserve Bank announced it will be taking a ‘wait and see’ approach towards rates. This means the cash rate is going to stay on 1.5% for another month.
Our Principal Loan Consultant Adam Broughton says he isn’t surprised by the Board’s decision to hold for another month.
“The Australian economy has been tracking well as of late. Consumer confidence, the property market, and business sentiment has been relatively robust” Adam said.
“This consistency has raised no need for the Reserve Bank to re-think their position on monetary policy.”
CoreLogic data shows that property prices are continuing to rise across most markets.
“Although property price growth is slowing, it is still tracking upwards. This demonstrates the strength of the property market” Adam said.
“The demands for home loans are at historical highs, with recent data from the Australian Bureau of Statistics showing that more than $30 billion worth of home loans were approved in July this year.”
Adam said that the Reserve Bank would be watching to see how the rate cuts play out across the rest of the year before adjusting the current monetary policy.
“Although the Board decided to leave the cash rate untouched for now, we can’t rule out any future rate cuts before the end of this calendar year.”
“Depending on the domestic and international markets, there is potential the Reserve Bank could cut rates at least once again this year.”
Regardless of what happens in the coming months, it’s important that buyers and home owners remember that interest rates are still at historic lows.
“If you’re thinking of buying, now could be the perfect time for you to get in the game” he said.
“Borrowing money has never been more affordable. It’s great news for property investors and home buyers alike.
If you already own property and have been in your home loan for a while, it’s a great time to review your current situation and ensure that it’s the right product for your needs - there could be a newer and cheaper product available that could help you save thousands over the lifetime of the loan.”
To organise a meeting with Adam, give us a call on 02 9358 4855 or complete the "contact us" form at the top of the page.