While the country is still distracted by uncertain election results, the RBA has voted for consistency, keeping the official interest rates on hold at the all-time low of 1.75%.
RBA Comfortable with Interest Rates
This came as no surprise, with the chief economist of AMP Capital, Shane Oliver stating in advance that the RBA had “expressed a degree of comfort” following June’s decision and was most likely in “wait and see mode” with regard to interest rates.
Meanwhile, the results of another vote – more commonly known as Brexit – has resulted in some experts predicting a greater demand for Australian housing as locals rethink their overseas moves and expats consider returning back to our fair shores.
Macquarie economic analyst James McIntyre believes that the decision could impact on population growth – and bring a boost to the housing market along with it. He says that the prediction of further interest rates cuts and Great Britain’s decision to leave the EU “could boost housing demand, and confound some of the more aggressive expectations for negative housing spill-overs”.
The hike in demand for housing is good news for mortgage holders and investors alike, especially in the winter, when the market usually cools off.
If you are thinking of buying or selling, you will no doubt be enjoying an interest rate that is at an all-time low. You can also rest assured that your biggest asset – your home – is still a safe and solid investment.
If you are considering any changes in the future, now is a great time to find out your options – as always, your mortgage broker will be able to offer further assistance.