Low and on hold – interest rates remain steady
Widely expected and with no surprise at all, the Reserve Bank of Australia (RBA) left the official cash rate on hold at 3% for another month with reasonably stable economic factors.
Leading into the April interest rate decision, all economic factors remained stable, while housing indicators have continued to improve – albeit at a gentle rate.
Activity levels in the market over the last couple of months have been really exciting to see, especially given the soft end to 2012. We’re now also seeing consumer confidence seep back into the market after the rate cuts last year.
There was some speculation of a May interest rate cut earlier this year, but at this stage in the interest rate guessing game, all economist reports we’ve come across suggest that the official cash rate will remain steady for the balance of this year.
Bear in mind that banks are now moving independently of the RBA, and some reports are that the cost of funding pressures have eased and maybe we will see some of the banks pass on the cuts they held back over the last 12 months – we’ll keep you posted!
If you’re feeling comfortable with your interest rate, the good news is your mortgage repayments will stay the same for another month. If you’re on a fixed rate and you’d like to see it lower, make sure you speak to a Mortgage Broking professional as there may be an opportunity to refinance and take advantage of the lower interest rates.
For all your mortgage, interest rate and finance needs, you can contact our team of professionals at Choice Home Loans, firstname.lastname@example.org or call 1300 2 CHOICE