Property owners are continuing to enjoy low interest rates as the Reserve Bank of Australia opted to leave the cash rate at 2% for October.
This news is not likely to come as any surprise to home owners, who have been opting for variable-rate loans in the belief that rates are not likely to rise anytime soon. During September demand for fixed-rate home loans hit a four-year low, with just 14.41% of all loans written being for fixed-rate mortgages.
Luckily, home owners were on the money this month. Low inflation, positive consumer sentiment in the wake of the political leadership change and positive economic impacts from the low Australian dollar gave the Reserve Bank no reason to change the cash rate for October.
Additionally, growth in Sydney’s property market has slowed slightly – a market that has been a cause for concern all year. In Brisbane, auction clearance rates tipped 53% on the weekend, up on the results we saw in September. With rates staying on hold, this interest in the local housing market is only set to continue.
Will we see another rate cut this year?
As Christmas looms, there is speculation about what will happen to the cash rate in the coming months, but many experts expect that rates will stay on hold until well into 2016. It would take a drastic shift in the economy for another cut to happen this year.