The Reserve Bank of Australia has cut the cash rate for the first time in 18 months, taking the official rate to the historical low of 2.25 per cent.
Last month’s disappointing consumer sentiment result combined with a recent spate of poor economic data ultimately forced the RBA to take action and cut the cash rate.
Data from the Westpac Melbourne Institute of Consumer Sentiment found confidence grew by just 2.4 per cent in January to 93.2, meaning pessimists still outnumber optimists by a significant majority.
And it is not just consumer sentiment that is low at the moment. The latest Monthly Business Survey from National Australia Bank found business confidence is currently sitting well below long run averages.
Now that the Reserve Bank has cut the official cash rate, it is likely that Australia’s lenders will follow suit and trim the interest on their suite of home loan products.
If this does happen, the cost of borrowing will ultimately become more affordable than it has been in a very long time, making now a good time to jump onto the property ladder.
As your local Mortgage Choice home loan expert, I will meet with you to understand your needs and compare hundreds of products from up to 28 leading banks and lenders to find the right home loan for you.
For a free Home Loan Health Check or to discover how you can take advantage of the low rate environment, please call me to arrange a time to meet.