Reserve Bank has decided to leave the cash rate on hold at 1.50%.
Here is a snippet of the announcement regarding housing market:
"Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Growth in lending for housing has slowed over the past year. Turnover in the housing market has declined. The rate of increase in housing prices is lower than it was a year ago, although some markets have strengthened recently. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades."
What does this mean for us as home owners and investors? If you haven't looked at your home loan recently you could be paying too much. Also now is a great time to make the most of lower rates by paying extra repayments.
Ask us today how we can help save you money.