It’s the first Tuesday of the month, and that means that the members of the Reserve Bank of Australia have met over lunch to discuss the official interest rates. Today (and as predicted by the majority of Australian economists) the members have decided to keep the cash rate at 2%, which continues to be good news for all mortgage holders.
In fact, there’s only one topic that everyone is talking about at the moment. The housing market is front and centre – not just in capital cities but all across the country as well. There is a distinct trend in price growth between houses and units nationally – compared to this time last year, house values are up 11.6% and units 7.2% increase across the board.
Interest rates keep dollar low
Jason Beddow MD of the investment firm, Argo, says that low interest rates and a depreciated currency were expected to be a bonus for the economy. “The recent fall in the Australian dollar should provide some support for our domestic economy as we move into 2016, and we feel that the housing market is likely to remain robust, due to the continued support of accommodative monetary policy.”
While the falling dollar isn’t great if you’re planning an overseas trip, it’s great for the country. The drop boosts tourism and makes it easier for overseas buyers to purchase Australian goods and services. So all in all, this means more money is injected into the Australian economy.
With all the talk in the housing market surrounding interest rates, are you wondering what your best home loan option is? Call us and we can go through the possibilities – right now there’s more choices than ever.