The cooling housing market, low wages and subdued business spending will curb consumer spending during the first quarter and possibly the second quarter of 2016, as suggested in an article written by Mark Mulligan in the SMH.
This means interest rates are likely to remain low for at least a little while longer as the Reserve Bank of Australia (RBA) grapples with mixed data.
Australia has been without a recession for 25 years, but as demand for resources from China slows down there may be scope for the RBA to put rates on hold for a little longer. This is despite a slight increase in employment and consumer confidence "pickup" .
A recent property price correction will add to the ability of the housing sector to contribute to growth in the coming years but it will open opportunities for property buyers who are looking to pick up a bargain in the coming year.
Lenders are still offering competitive rates for those who are still looking to purchase or refinance. Speak to a broker for professional advise today.