With consumer sentiment on the rise, the Reserve Bank of Australia’s (RBA) decision to keep the official cash rate on hold at 2.5% this month is not surprising, and shows confidence that the economy is strengthening.
According to the Index of Consumer Sentiment, consumer confidence jumped by 3.5% in August, from 102.1 to 105.7, the highest point the index has hit since March 2013.
There has been a significant increase in housing lending volumes with ABS Housing Finance figures showing that the seasonally adjusted total value of dwelling finance commitments rose 1.2% in June 2013, compared with May 2013.
At the same time, the total value of owner occupied housing finance commitments rose 2.1% in June 2013.House prices are also starting to move upwards, as auction clearance rates rise.
RP Data shows capital city dwelling values rising 1.6% in July 2013, which puts the cumulative recovery in residential home values at 6.5%, since May last year.
Mortgage holders and those looking to enter the market or invest in property should see this month’s decision by the RBA as a positive start to the spring buying and selling season.
With interest rates at historically low levels, the cost of borrowing is more affordable than it has been in a very long time – so now is the time to enter the market, review your current home loan or to invest in property to make the most of the low interest rates on offer.
However, be sure to review your options on more than interest rate alone.Take the time to compare all aspects of the loan from the rate to the fees and features to make certain you are getting a loan that is truly suited to your needs.
If you would like to discuss how you can make the most of the rate hold, or would like us to review your home loan options, please feel free to contact us at any time.