As expected….Interest Rates on hold
Incase you have not heard, the RBA have again kept interest rates at the current historic low of 2.5%.
The decision was expected by most economist and home owners with confidence in housing and small business starting to show signs of improvement. RP Data’s national research director Tim Lawless says the current level of interest rates is already providing a good stimulus to the housing market.
What we are also seeing is a high level of appropriate discounting from lenders to attract new business and take advantage of the current spike in housing. Some of the latest discounts we have seen are discounts of up to 1.1% from a major bank for loan over $1 Million and under 80% LVR.
I personally think the cash rate moving only 25 points in 6 months, and 175 basis points in nearly five years, has been great for home owners and buyers looking for rate stability.
Where to now? Will rates stay on hold?
My bold prediction is that we will see stable rates until early next year as the RBA wait for more data to come through. There are so many factors that come into rates decisions and one being controlling the high Australian dollar.
Either way the banks are fighting for your business right now, who have you got negotiating for you??
Till next time….