The Reserve Bank has played it safe again this month, leaving the official cash rate on hold for the 13th consecutive month.
With the economy tracking along quite nicely at the moment, the Reserve Bank's decision to leave the cash rate unchanged was largely an obvious one.
Consumer sentiment is on the up, as is business confidence and business conditions. We're also seeing property price growth continues to track along at a sustainable pace. Research conducted by RP Data showed property values climbed 4.2 per cent throughout winter. Sydney and Melbourne led the charge, with the capital cities recording price growth of 5 per cent and 6.4 per cent respectively.
But while dwelling value growth has been strongest in Sydney and Melbourne over the last few months, property remains a lucrative asset across the entire country.
Data from the Australian Bureau of Statistics shows home loan commitments are currently hovering around all time highs – which means more people are borrowing money in a bid to jump onto the property ladder. With interest rates continuing to hover around all time lows, now really is a great time to consider purchasing property.
Not only are property prices expected to climb further still over the coming months, but interest rates are likely to remain at their historically low levels for the foreseeable future – providing you with the perfect opportunity to purchase property, pay off your home loan faster and realise gains from property sooner.
In the Board meeting today, the Reserve Bank of Australia made it abundantly clear that they are comfortable with the current monetary policy setting.
Given that the economy is performing well under the current monetary policy setting, it seems the Board wanted to make it clear that the best course of action is likely to be a period of interest rate stability.
With that in mind, now is not just a good time for potential home buyers to consider purchasing property, it is also a good time for those with a mortgage to review their home loan and make sure they are still in the most suitable product for their needs.
A free home loan health check can help any borrowers identify whether or not there is a better product out there for their needs. Borrowers may find by giving their home a health check, they are able to refinance to a cheaper, more competitive product that can help save them thousands of dollars over the life of the loan.
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