Cash rate on hold – good news for festive season budgets
The Melbourne Cup may be the race that stops the nation, but it certainly didn’t stop the RBA board getting together to discuss the cash rate, opting once again to keep it on hold at 1.5%.
With the festive season just around the corner, the stable cash rate gives home owners a welcome opportunity to plan holiday season budgets knowing that home loan repayments won’t be impacted by an RBA-led rate hike – for November at least.
Are we heading towards higher rates?
Australia’s cash rate has now enjoyed a lengthy run at 1.5%, however in recent months a number of lenders have edged up their mortgage rates following increased funding costs.
This reflects a trend across a number of major countries including the US, where interest rates have been on the rise for some time.
Australia could be heading towards a new environment of rising interest rates, perhaps not imminently but in my opinion certainly in the foreseeable future. This makes it critical for investors and home owners to act now to be sure they have the right home loan to see them through this period of rate rises.
Your Aussie Broker is here to help you review your home loan. An appointment is free, and a simple chat will show if you still have the home loan that’s right for you, or if there’s something better available.