The Reserve Bank has played it safe again this month and has left the official cash rate on hold for the 13th consecutive month.
With the economy tracking quite nicely at the moment, the decision by the Reserve Bank to leave to cash rate untouched was a relatively obvious one. Consumer attitudes as well as business confidence and business conditions are growing, which is a significantly good sign. We’re also seeing property price growth continuing to track along at a sustainable pace. Recent research shows us that property values climbed 4.2 per cent throughout winter. Sydney and Melbourne led the charge, with the capital cities recording price growth of 5 per cent and 6.4 per cent respectively.
While Sydney and Melbourne have seen the most growth lately, property remains a lucrative asset across the entire country. Furthermore, current statistics indicate that home loan commitments are currently hovering around all time highs – meaning more people are borrowing money in a bid to jump on the property craze. Pair this with interest rates hovering at all time lows, and it is safe to say that now is the time to consider purchasing a property.
In addition to the expected climb of property prices over the next few months, interest rates are likely to remain at their historically low levels for the foreseeable future – providing potential buyers with the perfect opportunity to purchase property, pay off your home loan faster and realise gains from property sooner.
As the economy is performing well under the current monetary policy setting, it is pertinently clear for the time being that the Reserve Bank of Australia is going to ensure that the best course of action is to set a period of interest rate stability. With that mind, it is not only a good time for potential home owners to consider purchasing property, it is also an important time for those with a mortgage to review their home loan and make sure they are still in the most suitable product for their needs.
Borrowers may find that by giving their current home loan a review, they are able to refinance to a cheaper, more competitive product that can help save them thousands of dollars over the life of the loan. If this sounds like your current situation or if you wanted to know more about how we can help you purchase your next home, contact us on 02 9299 7044 or find us via www.clarencestreetmortgages.com.au