There were no surprises at the Reserve Bank of Australia’s March board meeting with the official cash rate left on hold at 4.75 per cent.
Although some recent GDP figures have been more promising, generally retail numbers and consumer sentiment have been down and there is a serious argument for holding interest rates throughout 2011.
For current borrowers, a longer pause in interest rates would be extremely beneficial providing some respite to mortgage holders, especially those in areas impacted by the floods, cyclones and fires in the early part of the year.
It has been interesting to see the flurry of competitive activity from banks in the last month. Although it’s unlikely to continue as a media battle, there are great signs of competition for all borrowers this year.
In this edition see our featured article on Lenders Mortgage Insurance and Refinancing and don’t miss our Guide to Budgeting for a New Home for helpful tips and ideas for first home buyers.
For more information on the home loan market, or to discuss your home loan strategy in the current economic climate, make an appointment with a Loan Market broker today.
As always, I hope you enjoy this edition of The Insider.