Official cash rate cut to 2.5% this month.
The Reserve Bank of Australia (RBA) had only two options this month in relation to the official cash rate – to keep rates on hold at 2.75% or cut them further. It’s unlikely that anyone would have been overly surprised had the cash rate not moved this month as signs of improvement in the property market and consumer sentiment are showing. For instance, capital city house prices have risen by 3.5% in the last couple of months, housing finance commitments have been improving, and consumer confidence remains steady. However, the encouraging signs in the property market and consumer sentiment don’t appear to have been enough for the Reserve Bank to confidently rest on its laurels. In light of today’s cash rate cut, the message for homebuyers and investors is clear – low official rates means now is a great time for clued-in and prepared buyers to consider entering the property market, to get in ahead of the rising trajectory of property prices and to take advantage of the historically low interest rates.
If you already have a mortgage, these currently low interest rates pose the perfect opportunity to repay your home loan faster and help you achieve your next financial goal sooner.
If you would like to discuss how you can make the most of the rate cut, please feel free to contact me at any time.