Christmas comes early with interest rate hold
The Grinch has steered clear of mortgage holders this Christmas, with the Reserve Bank of Australia choosing to share the cheerful Christmas spirit, announcing the 17th consecutive interest rate hold.
Whether you’re feeling comfortable with your current mortgage repayment, or you’re about to take on a new loan, it looks like you’re set to enjoy record low interest rates for a little while longer.
With the interest rate sitting at 2.5 per cent for the 17th consecutive month, the Housing Industry Association (HIA) has provided the following insights into the state of interest rate play.
“The odds are shortening on Australia experiencing its longest period of interest rate stability in modern history,” commented HIA Chief Economist, Harley Dale.
“We would reach that milestone in March next year and today’s RBA statement strongly points toward that outcome,” noted Harley Dale.
“In reflection of the uncertain and challenging economic environment we face, steady interest rates would more likely be interrupted in the short term by a further reduction rather than an interest rate hike, although there is no hint from the RBA that such action is in prospect.”
“We remain of the view that the Official Cash Rate will be on hold until well into 2015 and that will help sustain the strength in national new home construction activity. This sector is a very important driver of domestic economic activity.”
Use the Choice Home Loans online tools to calculate your would-be repayments or chat to them directly at firstname.lastname@example.org or call 1300 2 CHOICE.