The recent raft of positive economic data has encouraged the Reserve Bank of Australia (RBA) to leave the official cash rate on hold at 2.5% this month.
The RBA felt rising consumer sentiment teamed with improving business confidence and climbing dwelling values showed there was no urgent need for a rate cut in October.
Consumer sentiment and business confidence have both seen a dramatic improvement over the last month, hitting levels not seen in recent times. According to the Westpac-Melbourne Institute Index of Consumer Sentiment, confidence rose 4.7% in September – to sit 13.8 per cent higher than when the Reserve Bank first cut the official cash rate in November 2011.
Similarly, the NAB Monthly Business Survey found business confidence strengthened considerably in August, rising to its highest level since May 2011. In addition, capital city dwelling values recorded a modest 0.5% increase in August, taking the cumulative recovery in residential values to 7.0% since the market bottomed out in May last year.
With property prices on the rise and interest rates sitting at historically low levels, it may be the right time to get onto the property ladder or review your current home loan.
The combination of historically low rates and competitive offerings from Australia’s lenders is extremely appealing for anyone considering purchasing property in the near future. By looking at your purchasing options now, you may be able to get ahead of the rising property prices.
On the flipside, for those that already have a mortgage, low interest rates provide mortgage holders with the perfect opportunity to repay their home loan faster and achieve their next financial goal sooner.
If you want to learn more about your home loan options, you can call me or one of the team on 02 8765 8700.