At today meeting the RBA decided to leave the cash rate at 4.75% for the 10th consecutive month.
Since our last interest rate update, there was some speculation that the RBA would reduce rates due to the global financial situation, but this pressure seems to of been stabilised over the last few weeks.
Retail spending has increased (very moderately) so we believe the RBA has taken he view that it will not jump on any rate cut as they can afford to sit steady for the time being.
With the United States’ economy barely growing, and European sovereign debt weighing down market sentiments , it does not appear that interest rates will be rising any time soon. This is in contrast to the market’s expectation at the start of this year, when many economists forecast a rate rise towards the second half of 2011.
What the global situation has resulted in however is very competitive fixed rates with most lenders “slashing” their fixed rates over the past 3 weeks. We believe it is a great time to speak to us and see what is on offer as we have identified some great opportunities in the lending market.
The trials and tribulations of the last month go to show that nothing is for certain, and the importance of having the right home loan.
Feel free to contact us today to discuss your current and future home loan needs.