The Reserve Bank of Australia failed to shock anyone when it left the official cash rate on hold at 2.5 per cent.
A recent spate of positive economic data has ultimately encouraged the Reserve Bank to leave the cash rate unchanged for the 12th consecutive month.
According to the latest data from the Westpac Melbourne Institute of Consumer Sentiment, confidence improved last month, climbing 1.9 per cent in July.
In addition, National Australia Bank's latest Monthly Business Survey found business confidence recorded an unexpected increase, while data from the Australian Bureau of Statistics shows retail sales enjoyed a solid lift - increasing 0.6 per cent.
What's more, property prices continue to climb at a steady rate – proving property is still incredibly attractive to all buyers. Recent research conducted by RP Data found dwelling values across the combined capital cities climbed 1.1 per cent higher over the last three months. Sydney and Melbourne led the charge, with dwelling values rising 2.0 per cent and 1.8 per cent respectively over the three months ending July 2014.
This strong growth has helped bolster the Australian property market as a whole, with the aggregate capital gain now sitting at 5.0 per cent for the year to date across the combined capital cities.
All in all, it seems the economy is tracking along nicely and consumers and businesses are starting to recover from the Federal Government's “tough Budget”.
With interest rates still sitting at historically low levels and lenders competing aggressively for business, it seems now is a good time to be a potential buyer or home owner. In the last couple of weeks alone Australia's lenders have become even more aggressive on rates, with many slashing the interest on their suite of fixed rate home loans.
In July, three of the four majors cut up to 70 basis points off their five-year fixed rate home loans, taking them below 5 per cent. A lender offering a five-year fixed rate home loan with an interest rate under 5 per cent is largely unheard of and it just highlights how aggressive the lenders are willing to be to win customers and, in turn, market share.
Keeping all this in mind, now could be a really great time to either buy a property or review your current home loan.
Your local Mortgage Choice mortgage broker can conduct a free home loan health check for you to make sure you are in the right product for your needs, both now and into the future. If you're still tossing up the decision to jump into the property market, they can set up an obligation free appointment to work through your financial situation and see if your dream of property ownership can become a reality.